The IMF on Tuesday predicted a deep global recession this year with world growth contracting 4.4 per cent. The global economic crisis is far from over mainly because of the impact of the coronavirus pandemic, the Fund added.

In its latest World Economic Outlook report, the International Monetary Fund also said the swift recovery in China has surprised all while the global economy’s long ascent back to pre-pandemic levels of activity remains prone to setbacks.

“This crisis is, however, far from over. In our latest World Economic Outlook, we continue to project a deep recession in 2020.

“Global growth is projected to be -4.4 per cent, an upward revision of 0.8 percentage points compared to our June update,” Gita Gopinath, the chief economist of the IMF, said.

This upgrade owes to somewhat less dire outcomes in the second quarter, as well as signs of a stronger recovery in the third quarter, offset partly by downgrades in some emerging and developing economies.

According to the report, in 2021, growth is projected to rebound to 5.2 per cent, -0.2 percentage points below its June projection.

Noting that the Covid-19 pandemic continues to spread with over one million lives tragically lost so far, the Indian-American economist said living with the novel coronavirus has been a challenge like no other.

However, she said the world is adapting as a result of eased lockdowns and the rapid deployment of policy support at an unprecedented scale by central banks and governments around the world. She said governments should support incomes by well targeted cash transfers, wage subsidies and unemployment insurance.