The International Monetary Fund (IMF) on Tuesday warned that global economy may be worse than it earlier estimated due to coronavirus pandemic.

The body said therefore that global economy is on track for a more significant contraction than it projected back in April.

According to Gita Gopinath, the IMF’s chief economist-“For the first time since the Great Depression, both advanced and emerging market economies will be in recession in 2020. The forthcoming June World Economic Outlook Update is likely to show negative growth rates even worse than previously estimated,” The Fund also said the current crisis, which it dubbed the Great Lockdown, is “unlike anything the world has seen before.”

He noted that the services industry has been more severely impacted than manufacturing — which represents a change from previous crises, where a lack of investment hit manufacturing activity hardest.

He said- “It is possible that with pent-up consumer demand there will be a quicker rebound, unlike after previous crises,” and cautioned that this isn’t a given because the health crisis might alter consumer spending, with people potentially saving more.

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