- IMF Says Global Economic Collapse Caused by Coronavirus Will Be Even Worse Than Feared
by David J. Lynch, The Washington Post, via https://www.thehour.com/
The International Monetary Fund on Wednesday painted a bleak portrait of the global economy, saying the coronavirus pandemic has caused more widespread damage than expected and will be followed by a sluggish recovery.
The global economy will shrink this year by 4.9%, worse than the 3% decline predicted in April, the IMF said. No major economy is escaping the pandemic. The U.S. economy, the world’s largest, is expected to shrink this year by 8%. Countries that use the single European currency are headed for a decline of more than 10% while Japanese output will fall by 5.8%, the IMF said.
The Chinese economy, suffering the twin ravages of the pandemic and the trade war with the U.S, is projected to eke out just a 1% gain – its worst performance in several decades.