RIO DE JANEIRO, BRAZIL - The coronavirus crisis is causing an unusually severe impact on economic activity. The International Monetary Fund (IMF) projects that, as a result of the pandemic, the world economy will contract by three percent in 2020.
In short, a dramatic reversal after closing 2019 with growth of 2.9 percent. This is a "much greater" impact than the 2008 and 2009 financial crisis. Assuming the pandemic subsides in the second half of 2020, which is the IMF's assumption, the economy will grow 5.8 percent in 2021 as activity normalizes and is aided by public policy . . .