WHAT’S NEW - The International Monetary Fund has downgraded its outlook for the world economy again, projecting a significantly deeper recession and slower recovery than just two months ago. The Fund now expects global GDP to shrink 4.9% this year, more than the 3% predicted in April. For 2021, the Fund sees growth of 5.4%, down from 5.8%. Its increased pessimism reflected the larger-than-expected supply shock during the earlier lockdown, in addition to the continued hit to demand from safety measures.
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