The International Monetary Fund (IMF) has again revised down its global economic forecasts for 2020 and 2021, highlighting the uncertainties that still surround the recovery. The French economy is expected to be the third most affected economy in 2020.
Days go by and the economic consequences of the Covid-19 crisis seem to be getting worse. This is in any case what is anticipated by the International Monetary Fund (IMF) which revised downwards its economic forecasts for 2020 and 2021 on Wednesday 24 June. The IMF is now expecting a 4.9% drop in overall economic activity this year, compared to its April estimate of just 3.0%. And for 2021, it has lowered its forecast for global growth to 5.4% from 5.8% expected in the spring.
Thus, despite the expected recovery, world GDP in 2021 is expected to be about 6.5% below the level forecast last January, before the pandemic broke out.
“The Covid-19 pandemic had a greater than expected negative impact on activity in the first half of 2020, and the recovery is expected to be more gradual than expected,” the international organization explains in its new Global Economic Outlook.
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