IMF Forecasts a Long Global Recession
The International Monetary Fund (IMF) estimates that the global economy will stay in a recession that is longer and more serious than previous ones, before a “light” return, according to the report on prospects for the global economy.
The IMF report shows that the global recession and the financial crisis will lead, most probably, to an unprecedented decrease in production. IMF economists have arrived at this conclusion by comparing the current crisis with those recorded previously in the world.
IMF warned that the decline of capital inputs in emerging countries will take time, because of the problems faced by banks in developed countries. The risks are prevalent in Eastern Europe, where the parent banks from Western Europe, which dominate the local banking landscape, threatens the financial sector and local economy.
IMF announced in march that the global economy will compress up to 1% this year, for the first time since the Second World War.