IMF posts even more grim predictions

IMF posts even more grim predictions

The pandemic’s effects over the economies are more intense than anticipated.

The second wave of infections doesn't do anyone any favors, especially the world's economy. If, two months ago, the situation didn't look too bleak, now, the IMF revised its initial forecasts, and the global output is at even more risk.

Even though economies started to reopen, the International Monetary Fund stated that lockdown characteristics and social distancing worked as a whole that hit not only investment but also consumption.

Now, the IMF expects the global output to contract by 4.9% from the previous 3%. The next year’s recovery will be weaker than the 5.8% expected (to a revised 5.4%).

The world's major economies will feel the hit harder than the rest. The US and Eurozone output is said to contract by more than the 2% predicted. The US will probably reach 8% shrinkage, while Eurozone faces 10.2% downturn in 2020.

In Latin America, the decline would be higher, with Brazil heading towards 9.1%, and Argentina to 9.9%. Mexico should experience a 10.5% decrease.

Although it is the place where it all started, and for some time it was hit the hardest, China will be showing a 1% economic improvement in 2020, revised from 1.2%.

According to the IMF, the world needs more policy actions and support from governments and central banks to reduce the pandemic's impact and support businesses and jobs.

Europe50 is currently trading by more than 0.20% higher, while the American benchmarks lost between 0.19% and 0.50%.

Build your strategies based on the latest market news! Visit CAPEX.com for more!

Sources: reuters.com, finance.yahoo.com


The information presented herein is prepared by CAPEX.com and does not intend to constitute Investment Advice. The information herein is provided as a general marketing communication for information purposes only and as such it has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Users/readers should not rely solely on the information presented herewith and should do their own research/analysis by also reading the actual underlying research. The content herewith is generic and does not take into consideration individual personal circumstances, investment experience or current financial situation.

Therefore, Key Way Investments Ltd shall not accept any responsibility for any losses of traders due to the use and the content of the information presented herein. Past performance is not a reliable indicator of future results.