How much global GDP is the IMF estimating will be lost over two years?

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The IMF Projects a $12 Trillion Loss in Global GDP Over Two Years Due to the Pandemic

The International Monetary Fund (IMF) estimates that the global coronavirus pandemic will result in a loss of US$12 trillion over a two-year period. This projection underscores the profound and widespread economic devastation caused by the crisis, which has led to unprecedented declines in global Gross Domestic Product (GDP) and widespread job destruction. The fund's chief economist, Gita Gopinath, has cautioned that the world is not yet out of the woods, highlighting the pervasive uncertainty surrounding the recovery.
Global GDP Set for Significant Contraction in 2020

The IMF's updated World Economic Outlook indicates a substantial contraction in global GDP for the current year, with an estimated plunge of 4.9 per cent. This figure represents a more severe impact on economic activity in the first half of 2020 than initially anticipated. The crisis has led to worldwide business shutdowns, resulting in the destruction of hundreds of millions of jobs. Major economies, particularly in Europe, are facing double-digit collapses in their GDP.
Recovery Forecast Mired in Uncertainty

While businesses are gradually reopening in many nations and China has demonstrated a stronger rebound than expected, the IMF's forecast for recovery is tempered by significant uncertainty. A potential second wave of viral infections poses a substantial threat to the projected rebound. Consequently, global GDP is only expected to rebound by a modest 5.4 per cent in 2021, and this optimistic scenario is contingent on all factors proceeding favourably.
Lasting Scars on Employment, Businesses, and Trade Anticipated

Beyond the immediate financial losses, IMF economists express concern that the coronavirus pandemic will leave lasting detrimental effects on employment, businesses, and international trade. The damage is described as stunning and more extensive than any downturn witnessed in recent decades. The recession is expected to be more than double the impact of the global financial crisis in 2009. Global trade volume is projected to collapse by just under 12 per cent, with advanced economies experiencing an even more pronounced decline.

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How much global GDP is the IMF estimating will be lost over two years?

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