IMF Downgrades Growth Forecast

The International Monetary Fund updated its April World Economic Outlook this morning and the news is not good. In April, the IMF projected that global GDP would slip by 3% this year but that expectation has fallen to a 4.9% contraction. For the U.S., the 5.9% contraction in 2020 that was forecast in April has now become an expected drop of 8%. For 2021, the Fund expects global GDP to grow by 5.4% and sees the American economy rebounding by 4.5%. The projections assume that lockdown measures will not be resumed.