According to the International Monetary Fund (IMF), the economic crisis set to hit the world this year will be the worst since The Great Depression in 1929. The organization said the collapse will be twice as big as the world’s last financial crunch in 2008, putting all developed and developing economies in check.
The IMF expects output in Latin American and the Caribbean to fall 5.2 percent this year, with a possible recovery of 3.4 percent in 2021. The situation is worse in Brazil, South America’s biggest economy. The IMF has put the country down to shrink 6.1 percent in 2020, a stunning 7.5 percentage points under the government’s forecasts in January, before the Covid-19 pandemic. With the economy grinding to a near halt, the IMF tips Brazil’s unemployment to reach 14.1 percent, up from 11.9 percent last year.