IMF says economic outlook worsened since forecast in mid April
The International Monetary Fund said that the global economic outlook has worsened since its latest forecast three weeks ago and the world can expect more waves of financial market turbulence.
Developing nations’ external financing needs probably will be far above the $2.5 trillion that the IMF has previously projected, chief economist Gita Gopinath said in a webcast Thursday hosted by the Council on Foreign Relations.
The IMF said in the World Economic Outlook report on April 14 that global gross domestic product will decline 3% this year. That baseline scenario assumed that the pandemic fades in the second half of this year and that containment measures can be gradually wound down, a scenario that looks less likely now, Gopinath said.
“We know this crisis isn’t going away anytime soon,” Gopinath said.
The IMF’s April outlook also sketched out three alternative scenarios in which the virus lasted longer than expected, returned in 2021 or both. A lengthier pandemic would wipe 3% off GDP this year compared to the baseline, while protraction plus a resumption next year would mean 8% less output than projected in 2021, the Fund said.
Enter your email to get our daily newsletter in your inbox
- Gold set off to a brighter start at the beginning of the week as the price of the precious metal went up by ₹278 to ₹46,013 per 10 grams on Monday.
- According to the plan, new users will get a JioPhone device, unlimited voice calls and data (2GB high-speed data every month) for two years at ₹1,999.
- Britain's financial services industry has been largely cut off from the EU, its biggest customer, since a Brexit transition period ended on Dec. 31 as the sector is not covered by the UK-EU trade deal.