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.
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Sources: reuters.com, finance.yahoo.com