Global Markets: Deep recession virtually certain says IMF

Trump, governors at loggerheads

By MarketsFarm

WINNIPEG, April 14 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.

– The International Monetary Fund (IMF) did an about-face in its World Economic Outlook released on Tuesday. Instead of calling for global economic growth of 3.3 per cent, the IMF has now forecast a drop of three per cent due to the COVID-19 pandemic. For Canada, the IMF foresees the country’s economy contracting 6.2 per cent in 2020 rather than the 1.8 per cent growth projected in January. Italy is now expected to see its economy shrink by 9.1 per cent, the largest decline in the IMF’s outlook. The IMF said a global recession is virtually certain and could be the worst economic calamity since the Great Depression of the 1930’s.

– A dispute over authority has arisen in the United States, pitting President Donald Trump against several state governors. In a news conference on Monday, Trump flipped-flopped on previous comments and now claimed he alone has the authority to determine how and when the measures will be lifted. However, Republican and Democrat governors disputed Trump’s assertion, citing their states enacted many of these measures, not the President. Also, several states have agreed to co-ordinate their efforts to determine when to ease social distancing measures.

– Indian Prime Minister Narendra Modi announced on Tuesday that the country’s lockdown is now extended to May 3. Modi initially announced a three-week shutdown, but India surpassed 10,000 reported cases of COVID-19 with about 340 deaths.

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