IMF to Lower Forecast for Global Economic Growth Again
The International Monetary Fund (IMF) is expected to further lower its forecast for global economic growth due to the effects of the coronavirus pandemic. This is “very likely,” said IMF managing director Kristalina Georgieva on Tuesday in a conference organized by Financial Times.
“The data coming in from many countries is worse than our already pessimistic projections.” The IMF will therefore very likely publish a new forecast in June. “As things stand, we anticipate that there will be slightly more bad news about how we assess 2020.” The IMF usually revises its forecast in early July.
It was only in mid-April that the IMF lowered its estimates for the global economy more than ever before, due to the massive restrictions on public life and the economy in the fight against the pandemic, and that within only a few months.
Accordingly, the global economy will shrink by 3.0 percent this year. In its January estimate, the IMF still expected growth of 3.3 percent — a reduction of 6.3 points. 2020 will probably bring the worst recession since the Great Depression in the 1930s, IMF chief economist Gita Gopinath warned in April. This crisis is like no other so far. The economic situation is worse than in the 2008/09 financial crisis.
Author: Marko Vidrih
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