The IMF Expects 3% Contraction of the Global Economy In 2020

The IMF expects that the global economy will sharply contract in 2020 – by 3% as a result of the COVID-19 pandemic, which has already impacted severely economic activity around the globe. On a positive note, however, the IMF projects that the recession will be followed by a strong recovery – a global GDP growth rate of 5.8% in 2021.

The projections further show that advanced economies will suffer an average 6.1% contraction in 2020, while the drop in the emerging markets and developing economies will amount to 1%. The Euro Area economy will contract by 7.5% in 2020 and subsequently will grow by 4.7% in 2021.

In the US the estimated decline will be by 5.9% and the growth in 2021 – by 4.7%. According to the IMF, China’s economy will grow by a mere 1.2% in 2020 and will later accelerate in 9.2% in 2021.

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