by Mike ‘Mish’ Shedlock
In it’s global downgrade the IMF declares a Crisis Like No Other.
Uncertain but Diminishing Recovery
In April, the IMF projected global GDP to be -3.0% and the US at -5.9%. Today, the IMF announces an Uncertain Recovery and a Crisis Like No Other.
Global growth is projected at –4.9 percent in 2020, 1.9 percentage points below the April 2020 World Economic Outlook (WEO) forecast. The COVID-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and the recovery is projected to be more gradual than previously forecast. In 2021 global growth is projected at 5.4 percent. Overall, this would leave 2021 GDP some 6½ percentage points lower than in the pre-COVID-19 projections of January 2020. The adverse impact on low-income households is particularly acute, imperiling the significant progress made in reducing extreme poverty in the world since the 1990s.