IMF cuts its global economic forecasts for 2021 and warns of ‘long, uneven’ recovery – CNN

IMF cuts its global economic forecasts for 2021 and warns of ‘long, uneven’ recovery – CNN

The IMF predicted on Tuesday that the world economy will shrink by 4.4% in 2020, a less severe contraction than it forecast in June. The improvement is driven by a stronger than expected bounce in the United States and Europe after lockdowns lifted, as well as China’s return to growth.
However, the organization downgraded its outlook for 2021. The IMF now sees a 5.2% increase in global output next year, down from 5.4% in its previous report. Last month, the Organization for Economic Cooperation and Development also lowered its forecast for 2021.
“The ascent out of this calamity is likely to be long, uneven, and highly uncertain,” IMF chief economist Gita Gopinath said in a blog post.
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Output in advanced economies, as well as emerging markets — with the exception of China — is projected to remain below 2019 levels next year, she said.
Looking ahead, the IMF offered a bleak look at how the global economy might perform over the medium term, its first such forecast since the outbreak began.
Global growth is expected to slow to roughly 3.5% between
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