IMF is expected to revise its projection on the global economy as the previous condition does not signify with the impact of the global pandemic. The group was forecasted in April that the shrinking for the global economy would be 3% and the new forecast scheduled to released on June 24 is likely a reflection of the world’s challenging conditions. IMF Managing Director Kristalina Georgieva said that the group needed to revise further on the newest data that most countries’ economy declining further than the previous forecast.
The total of fiscal support spending by governments around the world are totalling more than $10 trillion which helped to reduce the duration of the crisis and create more support for most impacted sectors, as financial markets have recovered quite well almost bounce back to the pre-pandemic level, but there is another worrying cause, as the collapse in the trade may happen.
IMF comments added pressure as concerns about countries’ second wave of infection have sent the oil prices down. The city of Beijing recently reported almost 100 cases in a few days after almost two months lifted the lockdown without any community outbreak, and the city has shut down some parts where the cases are spreading. New cases also increase in some part of the United States after the lockdown has been eased.
Brent crude futures for August decreased slightly by 1.9% at $38/barrel at 04:00 GMT on June 15, after dropping low to $37.56/barrel earlier. The WTI contract for July are reported fell by 2.8% to $35.25/barrel.
