IMF on COVID-19 Crisis: More Severe Economic Fallout than Anticipated
Today, the International Monetary Fund released its June 2020, World Economic Outlook Update.
Dubbed, “A Crisis Like No Other, An Uncertain Recovery”, the IMF reports that for the first time, all regions are projected to experience negative growth in 2020.
The Outlook update states that the COVID-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and recovery is projected to be more gradual than previously forecast. Global growth is now projected at a –4% in 2020. That is 1.9 percentage points below the April 2020 IMF World Economic Outlook forecast.
According to the IMF, these new projections imply a particularly acute negative impact of the pandemic on low-income households worldwide which could significantly raise inequality. This adverse impact is viewed as endangering the significant progress made in reducing extreme poverty in the world since the 1990s.
While highlighting the deep downturn in 2020, the report also indicates a sluggish turnaround in 2021.
A word to the wise is sufficient, Bahamas.
We have to anticipate a slow but steady economic recovery at best.