Economics
IMF Sees Shallower Recession, Tough Path Back to Recovery
- Fund projects 4.4% contraction in 2020 after 5.2% seen in June
- Upgrade reflects strong stimulus cushion, China rebound
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The International Monetary Fund warned that the world economy still faces an uneven recovery until the coronavirus is tamed even as it offered a less-dire view of this year’s recession following massive stimulus from central banks and governments.
The fund now forecasts world gross domestic product to shrink 4.4% this year, compared with the 5.2% drop seen in June, according to the latest World Economic Outlook released Tuesday. For 2021, the IMF sees growth of 5.2%, down from 5.4%. The report includes revisions to June’s forecasts and other historical data to reflect updated country weightings.