Global GDP could be slashed by $22 trillion between 2020 and 2025, IMF warns
Tuesday, 26 January 2021
The Covid-19 pandemic will cut the world’s gross domestic product by $22 trillion (roughly €18 trillion) between 2020 and 2025, the chief economist of the International Monetary Fund (IMF) said Tuesday at a press conference.
This is a “cumulative loss” which is to be compared with the level of global GDP that the IMF had estimated before the pandemic, said Gita Gopinath in presenting the latest World Economic Outlook. The impact is therefore “substantial,” she commented.
As of June 2020, the IMF had estimated the cumulative losses to the world economy for 2020 and 2021 at more than $12 trillion (over €9.8 trillion).
With its new forecasts, the IMF stressed that the cumulative losses will continue while the pandemic is still not under control, with the appearance of variants of the new coronavirus.
Gopinath pointed out that “the burden of the crisis” is being borne “disproportionately” by the least qualified people, women and young people, recalling that the progress made in the fight against poverty had been reversed.