IMF revises up 2020 global economy forecast

Added On October 14, 2020

IMF Chief Economist Gita Gopinath said, "This upgrade owes to somewhat less dire outcomes in the second quarter, as well as signs of a stronger recovery in the third quarter, offset partly by downgrades in some emerging and developing economies." According to its latest World Economic Outlook (WEO) report, the IMF has also upgraded its forecast for advanced economies for 2020 to a contraction of 5.8 percent, followed by a rebound in growth to 3.9 percent in 2021. The U.S. economy is expected to shrink 4.3 percent this year, with the Euro Area on track to contract 8.3 percent. Britain's economy will see a contraction of 9.8 percent, while Japan's economy could decline 5.3 percent. For emerging market and developing countries, excluding China, the IMF has a downgrade with growth projected to be a contraction of 5.7 percent in 2020 and then a recovery to 5 percent in 2021. Brazil and Russia are projected to contract by 5.8 and 4.1 percent respectively, while India's economy could see a contraction of 10.3 percent. China is expected to grow by 1.9 percent, the only major economy that could see growth this year.