The global economy will shrink by 4.9 percent, the worst annual contraction since World War 2, the International Monetary Fund predicted Wednesday in its World Economic Outlook report.
In its update to the WEO report released in April, the IMF lowered its global growth forecast due to underestimating the economic damage the coronavirus has had on economies. For the first time ever, the IMF projects that all regions will experience negative growth in 2020.
The report predicts the gross domestic product in the United States will drop by 8 percent, worse than its April estimate of a 5.9 percent drop. For the 19 European nations that use the euro, the report says they will experience a 10.7 percent decrease in growth.
Russia and Saudi Arabia, two of the world’s largest oil-producing countries, will contract by 6.6 percent and 6.8 percent, respectively, the IMF reports.
Notably, despite the IMF’s outlook that all regions worldwide will experience a negative growth, it foresees China growing by 1 percent in 2020.
Source: VOA news