Virus hits key emerging markets, India -4.5pc, Mexico -10.5pc: IMF
- Mexico will see a double digit decline of 10.5 percent while Brazil just misses that mark with a drop of 9.1 percent.
WASHINGTON: Key emerging market economies are taking a severe hit to GDP amid the coronavirus pandemic, with India seeing the first contraction in decades, the IMF said Wednesday.
The updated World Economic Outlook shows India's GDP will fall 4.5 percent this year, far worse than expected in April just after the pandemic first took hold outside of China.
Mexico will see a double digit decline of 10.5 percent while Brazil just misses that mark with a drop of 9.1 percent.
Argentina is projected to fall 9.9 percent, with the country already in the middle of a massive debt crunch on top of the health and economic crises after once again defaulting on its foreign obligations.
During the global financial crisis in 2009, these emerging markets, along with China, were booming, supporting the global economy even as advanced nations faced severe recessions.
Meanwhile, South Africa's GDP is seen dropping 8.0 percent, while oil-producer Nigeria falls 5.4, the IMF said.
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