IMF Further Downgrades Global Growth Outlook
June 24, 2020
In April, the International Monetary Fund forecast that 2020 would see the steepest economic decline since the Great Depression. Now they have lowered their estimates even further. The IMF said today that they expect the global economy to shrink by 4.9%, as compared to a 3% decline predicted in April.
The downgraded forecast applies to all major economies, and is based on economic data released in April. Specifically, the IMF notes the “catastrophic hit to the global labor market,” saying that global employment loss in the second quarter of 2020 could be equivalent to losing 300 million full-time jobs.
The American economy, according to the IMF, is expected to shrink 8% this year. The U.K. is expected to see an even larger decline of 10.2%. China is that only major economy expected to see growth in 2020, though that is expected to be an anemic 1%.