According to the International Monetary Fund (IMF), recessions wreak havoc and the damage is often long-lived. Businesses shut down, investment spending is cut, and people out of work can lose skills and motivation as the months stretch on.
IMF expects world output in the medium-term to be about 3 percent lower in 2024 than pre-pandemic projections.
Because financial stability has largely been preserved, this expected scarring is less than what we saw following the global financial crisis. However, unlike what happened during the global financial crisis, emerging market and developing economies are expected to have deeper scars than advanced economies, with losses expected to be largest among low-income countries.
Despite all this gloom and doom, just remember, you are resilient. Carry on, especially on the global front. Read more to learn what’s in store for our global economy.