IMF Projects 5% Global Economic Decline in 2020

The dire outlook is worse than the IMF’s last forecast in April

Global economic growth will decline nearly 5% this year, International Monetary Fund officials announced on Wednesday, a much grimmer forecast than their last projections in April as the coronavirus pandemic triggers the world’s worst recession since the Great Depression.

The IMF’s latest dire World Economic Outlook update is nearly 2 percentage points worse than its last forecast in April, representing a slower-than-expected global recovery. The organization also downgraded its 2021 growth projections from 5.8% to 5.4%, which would leave global gross domestic product next year about 6.5 percentage points lower than pre-pandemic projections from January.

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