The IMF warned historic economic recession since the Great Depression. The International Monetary Fund expressed through a report in his blog, that the economy will slow down by 2020: 3%. It represents a drastic change compared to forecasts in the latest report of world economic Outlook published in January. Given this, the question arises of whether Bitcoin could be a option in the midst of this situation. All of this was generated by the pandemic spread of Coronavirus. That, in addition to causing thousands of deaths worldwide, has also produced a blockade and paralysis in the economic activity. Mainly due to the obligation to comply with the social isolation provided by different countries that implement the quarantine, as a necessary measure to avoid a little more of the spread. Many countries are now facing multiple crises. In particular, health, finance and the collapse of the prices of basic commodities, which interact in a complex manner. Gita Gopinath, director of the Research Department of the IMF, said in a note to the blog of the institution, after the close a global response to the coronavirus, “the magnitude and speed of the collapse of the economic activity that has occurred is different to anything experienced in our lives.”
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Decline in GDP in the world according to the IMF
In the event that in the majority of countries reach its highest point due to the pandemic in the second quarter, and as you step back in the second half of the year, according to the Perspective of the world economy in April the IMF projected that there will be a decrease in global -3%. After the IMF warned historic economic recession, this would be the greatest experience in the world since the Second World War (1939-1945). As well as the major crisis of an economic nature since the Great Depression that started in 1929. The intensity of the crisis will be much higher than that in the clipping of the global economy that occurred in 2009. By the financial crisis unleashed in 2008 with the bankruptcy of Lehman Brothers, the IMF argues. The advanced economies of Europe and north America fare the worst with fall of the GDP national more than 6% in all the cases this year. Italy will lead the global meltdown: With a snip of their national wealth to the 9.1 in%, followed by Spain (-8%), France (7.2% In), Germany (-7%), United Kingdom (-6,5%), Canada (-6,2%) and the united States (-5,9%). Meanwhile, the major emerging economies, mainly the asian ones, will be less damaged, with an average decrease of the GDP of their area of -1% in 2020. In fact, the wealth of China and India recorded positive growth of 1.2% and 1.9%, respectively, in this year, according to IMF estimates. Growth projections according to the IMF.
Recovery of the GDP by 2021
Gopinath said that there is some room for optimism for the next year. In the event that you dilute the COVID-19 and that the policy actions taken around the world to prevent bankruptcy of enterprises widespread loss of work and prolonged financial strain on the entire system to be effective. “We project a recovery of 5.8% for 2021,” said Gopinath. However, this recovery in 2021 is only partial. It is expected that the level of economic activity will remain below the level that had been projected for that year before I got the virus. The accumulated losses of the world’s GDP during 2020 and 2021 by the pandemic crisis could be around $ 9 trillion. A figure larger than the economies of Japan and Germany combined. So says the IMF report.
How is Bitcoin an option?
To not be so correlated with the traditional markets, Bitcoin can represent an alternative to deal with the recession that is coming this year. In addition, with the Halving in the agenda for the next month, the operators would be taking more positions with Bitcoin. To be the first major global crisis that is facing Bitcoin, there is no record of how she could react the main criptomoneda. However, there could be the conditions for the trend of your quote again be bullish.