IMF agrees that recession looms

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The Norwegian economy, like those elsewhere in the world, is suffering an enormous shock that will cut gross national product by 6.3 percent this year. Next year, however, Norway’s GNP should grow by 2.9 percent.

The numbers were published in the International Monetary Fund (IMF)’s latest economic prognosis after the Corona virus crisis spread worldwide. The IMF expects Norway’ unemployment rate will average 13 percent his year, and then fall to 7 percent next year.

“It’s very probable that the global ecoomy this year will experience its worst recession since the Great Depression (in the 1930s),” wrote the IMF’s chief economist Gita Gopinath, “and that the downturn for the world economy will be greater than what we saw during the finance crisis 10 years ago.”

The numbers support the gloomy predictions of Norwegian economists, with Kari Due-Andresen of Handelbanken Capital Markets perhaps the gloomiest of all. “All economic indicators suggest this is the biggest shock we have seen for the Norwegian economy and for the world’s economy ever,” Due-Andresen told state broadcaster NRK on Tuesday. “Everything has come to a halt, and the big question is how long this will last.” staff