IMF’s Gopinath: The fund to forecast a worse contraction in global economy for 2020

In a new blog, the International Monetary Fund (IMF) Chief Economist Gita Gopinath said that the Fund is expected to downgrade its 2020 global growth forecasts than previously estimated.

Key takeaways

Sees "profound uncertainty" about the path of recovery.”

“The economic crisis triggered by the novel coronavirus pandemic was more global and playing out differently than past crises, with the services sector hit harder than manufacturing and inflation low across the board. “

“Cites a striking divergence of financial markets from the real economy, which could portend greater volatility and potentially sharp corrections.”

Last month, Managing Director Kristalina Georgieva had said that the Fund was "very likely" to revise downward its pessimistic forecast for a 3% contraction in global gross domestic output in 2020.