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The global economy contract by 3% this year, as the countries around The World are shrinking at the fastest pace in decades, The International monetary Fund says.

The IMF, the global decline, described as the worst since The Great Depression of The 1930S .

He said the pandemic had plunged The World into a "crisis like No Other ".

- The Fund added that a sustained outbreak would. a test of The Ability of governments and Central banks to control The Crisis

Gita Gopinath , the IMF chief economist, said The Crisis could knock $9 Trillion (£7 2 Trillion ) off global GDP in The Next two years.

'Great Lockdown'

During the Fund in the latest World Economic Outlook, the "quick and comprehensive" response in countries such as the UK, Germany, Japan and the United States, praised said no country would escape the downturn.

It expects global growth to rebound to 5. 8% in The Next year, when the pandemic faded in the Second Half of the year 2020.

Ms Gopinath said today the "Great Lockdown" presented a "harsh reality" for the policy, given the "severity of the uncertainty about the duration and intensity of the shocks".

"predicts A partial recovery for the year 2021," said MS Gopinath. "But The Level of GDP still below the pre-virus-trend, the impact of considerable uncertainty about the strength of the return.

"Much worse growth outcomes are possible and perhaps even likely. "

Sharpest UK downturn in a century

The IMF predicts the UK economy will shrink by 6. 5% in 2020, compared with the IMF's January forecast for a 1. 4% GDP growth.

A decline of this magnitude would be larger than the 4. 2% drop in output seen in The Wake of the financial crisis.

It is also the largest annual decline since 1921, would, according to the Bank reconstructed of England data dating Back To the 18Th Century .

But that's to be expected, half the annual rate that the OBR, the expected fall in GDP of 35% in the three months to June.

The UK-holiday-Schema, in the midst of the government lockdown, is expected to limit the increase in unemployment on 4. 8% in the year 2020, from 3. 8% in the Last Year .

the British Chancellor of the exchequer Rishi Sunak has an obligation to help the billions of pounds in the wage subsidies and guarantees, workers and businesses due to the shutdown.

and The give released billions of pounds for the commercial banks.

Global pain

Ms Gopinath said that for the First Time since The Great Depression, advanced and emerging economies were expected to fall into recession.

The IMF warned that the growth in the advanced economies does not return to its pre-virus peak until at least 2022.

The U.S. economy is expected to contract by 5. 9% this year, the largest annual decline since 1946. Unemployment in the US is also expected to jump to 10. 4% this year.

A partial recovery is expected to growth in the year 2021, with the expected US-4. 7%.

The Chinese economy is expected to expand by only 1. 2% this year, that would be the slowest growth since 1976. Australia is expected to suffer its first recession since 1991.

The IMF warned that "significant risks of a worse result".

He said that to control when the pandemic took more and it was a second wave in the year 2021, this knock would GDP, an additional 8 percentage points of the global.

The Fund said in this scenario, the trigger may lead to a downward spiral in debt-ridden people.

He said, the investors might not be willing to lend to some of these peoples, which would cost the push-up foreign capital.

The IMF added: "This increase in the cost of the state debt, or simply the fear of it materializing, and could prevent many countries assumed to be the provision of income support. "

Economic medicine

While more lock is to restrict the economic activity, said the IMF, quarantines and social distancing measures were essential to have.

He said: "Upfront-containment measures are essential to slow down in order to cope with the spread of The Virus and allow health systems and to help pave The Way for an earlier and more robust resumption of economic activity.

"uncertainty and reduced demand for services could still be worse in a scenario of stronger scattering without social distancing"

The IMF's four priorities for dealing with the pandemic.

He called for more money for Health Care , financial support for workers and businesses, continued Central Bank support and a clear exit plan for the upturn.

It is The World urged to work together to find and distribute treatments and a vaccine.

- The Fund added that many developing countries need to debt relief in The Coming months and years.

uk economy, recession, coronavirus pandemic, global economy, international monetary fund (imf)

Source of news: bbc.com