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Graphic vergelijkt IMF-verwachtingen met de Grote Depressie van de jaren 1930.
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BUSINESS

Pandemie-recessie ergste sinds Grote Depressie

By Duncan Mil

April 29, 2020 - De wereldeconomie kan als gevolg van de coronapandemie met $9 biljoen krimpen – volgens de IMF World Economic Outlook de grootste achteruitgang sinds de Grote Depressie.

The Smoot-Hawley Tariff Act of President Herbert Hoover in 1930 exacerbated the crisis. Smoot-Hawley backfired. The act increased import duties by some 20 per cent, triggering a trade war. Between 1929 and 1932 international trade plummeted by more than two-thirds.

In March 1933 President Franklin D. Roosevelt entered the White House. FDR introduced the Reciprocal Trade Agreements Act -- known as the “New Deal” -- which reduced tariff levels and promoted global trade. A second and third New Deal followed. These programmes stimulated the economy and helped lower the unemployment rate, which had peaked at 25 per cent.

Gita Gopinath, Chief Economist of the International Monetary Fund (IMF), has likened the current coronavirus pandemic to the Great Depression. Writing in the April IMF World Economic Outlook, Gopinath projects global growth in 2020 to fall to -3 per cent. This revision is a downgrade of 6.3 percentage points from January 2020, a significant change over a short period. This fall makes the Great Lockdown the worst recession since the Great Depression, and far worse than the Global Financial Crisis of 2008-09.

Sources
PUBLISHED: 29/04/2020; STORY: Graphic News; PICTURES: Associated Press
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