Economics
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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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%.