(VOVWORLD) - The economic fallout from the coronavirus pandemic could inflict "significant scarring" worldwide and the outlook for recovery remains highly uncertain, IMF chief economist Gita Gopinath said Friday.
The fund in April projected a global economic contraction of 3.0 percent, but Gopinath said the updated forecasts due out June 24 "will be very likely worse." "There is profound uncertainty of recovery," she said in a virtual address to the 7th Asian Monetary Policy Forum.
Noting the damage done in particular sectors like transportation, as well as the growing risk of bankruptcies and persistent job losses, coupled with expected changes in consumer behavior, she said "one has to be concerned about the path of recovery”.