World economic system in deep recession, development to be -4.4%, predicts IMF

Washington, October 13

The IMF on Tuesday predicted a deep global recession this year and the world growth to be -4.4%, asserting that the global economic crisis is far from over mainly due to the impact of the coronavirus pandemic.

‘Indian economy to contract by 10.3%’

  • The Indian economy is projected to contract by 10.3% this year, the IMF said

  • However, India is likely to bounce back with an impressive 8.8% growth rate in 2021, thus regaining the position of the fastest growing emerging economy

  • America’s economy is projected to contract by 5.8% in 2020 and grow by 3.9% the next year, the IMF said

In its latest World Economic Outlook report, the International Monetary Fund also said the swift recovery in China has surprised on the upside while the global economy’s long ascent back to pre-pandemic levels of activity remains prone to setbacks.

“This crisis is however far from over. In our latest World Economic Outlook, we continue to project a deep recession in 2020. Global growth is projected to be -4.4%, an upward revision of 0.8 percentage points compared to our June update,” Gita Gopinath, the Chief Economist of the IMF, said.

This upgrade owes to somewhat less dire outcomes in the second quarter, as well as signs of a stronger recovery in the third quarter, offset partly by downgrades in some emerging and developing economies.

According to the report, in 2021, growth is projected to rebound to 5.2%, -0.2 percentage points below its June projection. — PTI

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