On Tuesday, The International Monetary Fund said that the world economy will fall 4.4% in 2020, a less severe contraction than it forecast in June. The new prediction is due to a stronger than expected bounce in the US & Europe after lockdowns lifted, as well as China’s return to growth.
However, the IMF downgraded its outlook for next year. The organization now sees a 5.2% rise in global output in 2021, down from 5.4% in its previous prediction.
IMF chief economist Gita Gopinath said the ascent out of this calamity is likely to be long, uneven, and highly uncertain.
The IMF said global growth is expected to decrease to 3.5% between 2022 & 2025, leaving the outcome of most economies below levels that were predicted before the Covid-19 crisis.