Due to the global coronavirus pandemic, a collapse in consumption and other data point to a downward revision of the Fund’s already pessimistic outlook for the global economy, the International Monetary Fund said.
Economic data gathered since April were confirming the Fund’s forecast for a 3 percent contraction in global economic output and pointed toward potentially worse scenarios, IMF chief economist Gita Gopinath said.
The high level of uncertainty around its outlook emphasized by the Fund last month. A longer and deeper crisis could result in a contraction of 6 percent for 2020 and zero percent growth in 2021.
As long as there was sufficient testing for COVID-19 and appropriate quarantining of those who become ill, IMF said there was a possibility of recovery after countries began easing widespread lockdowns.
