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IMF Projects Deeper Global Recession on Growing Virus Threat

  • Fund projects 4.9% contraction in 2020 versus 3% previously
  • Financial markets seen as ‘disconnected’ from economic outlook
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Watch: IMF Chief Economist Gita Gopinath explains the organization's shift in forecast.(Source: Bloomberg)
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The International Monetary Fund downgraded its outlook for the coronavirus-ravaged world economy, projecting a significantly deeper recession and slower recovery than it anticipated just two months ago.

The fund said Wednesday it now expects global gross domestic product to shrink 4.9% this year, more than the 3% predicted in April. For 2021, the fund sees growth of 5.4%, down from 5.8%.