IMF Revises its Global GDP Forecast Higher, but Warns the Economy ‘remains prone to setbacks’

10/13/2020

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Silvia Amaro | CNBC

The International Monetary Fund on Tuesday turned slightly more positive on the global economy for this year, but warned of a “long, uneven and uncertain” recovery.

The global economy is now projected to contract by 4.4% in 2020 — an upward revision from an estimate of -4.9% made in June. The IMF’s projection assumes that social distancing due to the coronavirus pandemic will continue into 2021, and that local transmission will fall everywhere by the end of 2022.

“We are projecting a somewhat less severe though still deep recession in 2020, relative to our June forecast,” the IMF’s Chief Economist Gita Gopinath said in the latest World Economic Outlook.

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