While this year the world economy’s downturn is expected to be shallower than originally anticipated, the outlook for 2021 is slightly worse than previous macroeconomic predictions showed.
The world economy will fall just 4.4 percent for the whole of this year, the International Monetary Fund reports. That’s a slightly lower decline in global GDP than the Fund predicted this June. A slight improvement in the outlook for this year has been signed by the better than expected condition of European economies and a faster recovery in china’s economy. The United States, too, is doing better than it originally seemed, according to the IMF.
By contrast, weaker economic growth can be expected in the year to the next, according to the Fund. While the global economy was originally expected to strengthen by 5.4 percent, the International Monetary Fund now predicts “only” 5.2 percent growth. According to the IMF’s chief economist, Rita Gopinath, we have a long and uncertain path from the current coronavirus crisis. Rather, solid economic growth will be an exception and a reflection of the fact that the global economy will fall uneasably this year. In the years to come, world GDP growth will be rather close to the 3% threshold.