The International Monetary Fund has released its latest new growth projections and it makes for interesting reading. There are many key take-outs from the report, one being that it shows a global financial contraction of 4.9%, with every region of the world simultaneously in recession for the first time in history.
The worlds developed economies are forecasted to be hit hardest during the projected crisis. Contractions of 10.2% are forecasted for the UK and the EU in 2020. However, an incredibly interesting takeaway from the report is that it is projected that in 2021 (after the UK will have completely exited the European Union) the UK is set to fall by as much as the EU then grow back much faster than the Eurozone area and EU countries.
This projected 2021 growth will not make up for the huge 2020 recession. All advanced European countries’ economies look is set to be smaller at the end of 2021 than they were at the end of 2019, pre-Coronavirus. In a society that is often fixated on economic growth, this is big news.
If we can believe IMF forecasting, which has been wrong before, then individually over 2020 and 2021, the UK economy would have shrunk by 4.5%, France by 6.1%, and Italy and Spain both by around 7.3%.
One Twitter user warned of caution regarding these numbers. @tw10101 has said: “I think we will contract by 10% this year. Others by 12%. There is no upside to this. That is unimaginably bad contraction for 1 year”.
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Editor-in-Chief | Carl D. Pearson has been involved in British politics and media from an early age, with the key knowledge of what it takes to run a news organisation for the 21st century. Mr Pearson, as Editor-in-chief, is responsible for supervising the daily tasks of publishing media and content to UNN’s website and various platforms.
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