Global Recession

“April World Economic outlook projects global growth in 2020 to fall to -3%” — IMF

America is the world’s largest economy and has a strong trade and financial linkages with many other countries, most of the globally synchronized recessions coincide with the US. According to the United States, Economic Forecast for the first quarter of 2020 stated that US GDP falls 8.3% in 2020 and there is a 30% probability of deep recession. France enters recession with a 6% drop in the first quarter of 2020, this is the worst fall ever since world war 2(1945).

Response to crises and recessions

Economic policies should be geared towards avoiding crises. Sustainable economic policies and financial structures are the best options. If these policies are insufficient, central banks will need to include financial stability risks in their analysis and decisions.

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