Group of 20 Countries that suffer banking crises endure steep drops in output that do not rebound for at least seven years, the International Monetary Fund said on Tuesday in a study it called “sobering” for the long-term productivity prospects of many economies.
As hopes strengthen that the global economy is recovering, the IMF pointed out that banking crises usually leave “long-lasting scars” on countries, knocking an average 10 per cent from output per capita.
