IMF, "Global Economic Loss Equivalent to German and Japanese Economies"... "Emerging Markets Face 'Perfect Storm'"

Kristalina Georgieva, IMF Managing Director
[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The International Monetary Fund (IMF) on the 14th (local time) released a gloomy outlook on the global economy.

In the 'Global Financial Stability Report' (GFSR) published on the 14th (local time), the IMF diagnosed that "while instability across global financial markets has somewhat eased, emerging markets and frontier economies are facing a perfect storm (a massive complex crisis)." It particularly emphasized the crisis as an "unprecedented complex shock."

The IMF pointed out that emerging countries are vulnerable to sudden shocks like the 'COVID-19 pandemic' due to their heavy reliance on foreign funding or raw material exports and their high external borrowing ratios.

The IMF expressed concern that the plunge in international oil prices has put oil-exporting countries such as Colombia, Nigeria, Russia, and Saudi Arabia in considerable crisis.

Additionally, Gopinath, IMF Chief Economist, in a report titled 'The Great Lockdown: Worst Economic Downturn Since the Great Depression,' predicted that the global economic loss caused by the COVID-19 pandemic will reach $9 trillion (approximately 1,966 trillion KRW) by next year. This warns that the economic loss will exceed the combined economies of Germany and Japan.

The IMF forecasted that due to the COVID-19 pandemic, the global economy will contract by -3.0% this year and grow by 5.8% next year.

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