The IMF expects global economy to contract sharply by 3% in 2020 following devastation by COVID-19 pandemic, according to press release. Global growth projected to be 5.8% in 2021 if economic activity normalizes.
- IMF 2020 Outlook
- Raises advanced economies GDP growth forecast from -8.0% to -5.9%
- Raises US GDP growth forecast from -8.0% to -4.3%
- Raises EU GDP growth forecast from -10.2% to -8.3%
- Raises Germany GDP growth forecast from -7.8% to -6.0%
- Raises France GDP growth from -12.5% to -9.8%
- Raises UK GDP growth from -10.2% to -9.8%
- Raises Japan GDP forecast from -5.8% to -5.3%
- Raises China GDP growth forecast from +1.0% to +1.9%
- IMF 2021 Outlook
- Maintains China GDP growth forecast at 8.2%
- Cuts Global GDP growth forecast from 5.4% to 5.2%
- Cuts advanced economies GDP growth forecast from 4.8% to 3.9%
- Cuts US GDP growth forecast from 4.5% to 3.1%
- Cuts EU GDP growth forecast from 6.0% to 5.2%
- Cuts Germany GDP growth forecast from 5.4% to 4.2%
- Cuts France GDP growth from 7.3% to 6.0%
- Cuts UK GDP growth from 6.3% to 5.9%, assuming orderly Brexit
- Cuts Japan GDP forecast from 2.4% to 2.3%
- Outlook could worsen if poor health response to pandemic witnessed
- Improved forecast a result of somewhat less ire Q2 contraction stronger than Q3 rebound forecast as China and advanced economies opened
- Sovereign debt levels at a record level of more than 100% of GDP
2020 World GDP contraction worse than during the 2008-2009 financial crisis
