‘A crisis like no other,’ IMF predicts Covid-19 recession will be worst since Great Depression

The International Monetary Fund (IMF) in a report released Tuesday said the “Great Lockdown” coronavirus pandemic will create a more serious recession than the Great Depression in the 1930s before rebounding in 2021 with 5.8 per cent growth.

In its World Economic Outlook, the IMF predicted the global economy will shrink 3 per cent this year. That number would trump the 0.1% contraction we experienced in the 2009 financial crisis.


The outlook for Canada calls for a contraction of 6.2 per cent this year followed by growth of 4.2 per cent in 2021.

The outlook for Canada calls for a contraction of 6.2 per cent this year followed by growth of 4.2 per cent in 2021. The IMF prediction represents a stark downgrade. The IMF previously forecast [in January], global growth of 3.3 per cent this year.

Asked Monday about when economic restrictions will be lifted in Canada, Prime Minister Trudeau says it will be ‘a while, still’ before they lift restrictions. “People want to know when we can get back to normal life but the reality is we have to be extremely vigilant for many weeks. We recognize different areas of the country are not at the same place on the Covid-19 infection curve,” said Trudeau.