IMF Forecasts 2020 Global Economic Contraction at 4.4%

In its latest World Economic Outlook report, the International Monetary Fund noted that it forecasts the global economy to contract by 4.4% in June, compared to 5.2% contraction in June’s publication, as reported by Reuters.

“IMF forecasts 2021 global growth at 5.2% vs 5.4% in June, forecasts use revised purchasing power parity weightings.”

“IMF forecasts US 2020 contraction at 4.3% vs 8.0% in June; 2021 US growth at 3.1% vs 4.5% in June.”

“IMF forecasts China 2020 growth at 1.9% vs 1.0% in June; china 2021 growth forecast unchanged at 8.2%.”

“IMF forecasts eurozone 2020 contraction at 8.3% vs 10.2% in June; 2021 growth seen at 5.2% vs 6.0% in June.”

“Improved forecasts due to somewhat less dire Q2 contraction, stronger-than-forecast Q3 rebound as advanced economies and China reopened.”

“2020 contraction in emerging markets, excluding China, worsens to 5.7% from 5.0% in June forecast.”

“Worse outlook for emerging markets ex-China reflect the continued spread of the virus, greater dependence on tourism, remittances, commodities, external finance.”

“Industrial output rebounding in US, China, Europe and Brazil but services, consumer spending lagging, Q4 reopening momentum slowing.”

“Countries should continue to support idled workers and firms to avoid ‘scarring’ that will reduce future growth potential.”