The International Monetary Fund (IMF) expects global GDP to shrink 4.9 per cent this year – an increase from the 3 per cent it predicted back in April.
The outlook projects a deeper recession and slower recovery than it anticipated two months ago – a direct result of the devastating effects of the pandemic on the world economy, which continues to spread around the world.
Reported by Bloomberg, the IMF also predicts a fund forecast growth of 5.4 per cent in 2021, down from 5.8 per cent.
The IMF said it worsened its outlook due to the scarring from a larger-than-anticipated supply shock during the initial weeks of lockdown, alongside the continued impact on demand due to social distancing and other safety measures.
“With the relentless spread of the pandemic, prospects of long-lasting negative consequences for livelihoods, job security and inequality have grown more daunting,” the IMF said.