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I.M.F. Predicts Deeper Global Downturn Even as Economies Reopen

  • Writer: Editor Desk
    Editor Desk
  • Jun 24, 2020
  • 1 min read

World finance group expects a 4.9 percent contraction this year instead of its previously forecast 3 percent drop, underscoring the scale of the task facing policymakers.
IMF predicts Downturn to get deeper

WASHINGTON — The International Monetary Fund warned on Wednesday that the global economy faces an even deeper downturn than it previously projected as the coronavirus pandemic continues to sow uncertainty and businesses around the world struggle to operate amid the virus.

The forecast underscores the scale of the task that policymakers are facing as they try to dig out from what the I.M.F. has described as the most severe economic contraction since the Great Depression. Even as countries begin reopening their economies, it is increasingly evident that the recovery will be uneven and protracted as cases continue to surge and consumers remain wary of resuming normal activity.

More than 35,000 new coronavirus cases were identified across the United States on Tuesday, according to a New York Times database, the highest single-day total since late April and the third-highest total of any day of the pandemic. Other countries are also experiencing surges in new cases, complicating plans to reopen the global economy. In an update to its World Economic Outlook, the I.M.F. said it expected the global economy to shrink 4.9 percent this year — a sharper contraction than the 3 percent it predicted in April.


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