China News Agency, Washington, June 24 (Reporter Shahan Ting) The International Monetary Fund (IMF) released the "World Economic Outlook" update on the 24th, which predicts that the global economy will shrink by 4.9% in 2020, down from the April report. 1.9 percentage points.
The report said that the negative impact of the new coronary pneumonia epidemic on economic activity in the first half of 2020 was more severe than previously expected, so the recovery is expected to be slower than previously predicted. Based on benchmark assumptions such as continued social distance in the second half of the year, increased economic trauma, increased health and safety measures by companies, and the status quo of the financial environment, the IMF expects the global economy to shrink by 4.9% this year, but is expected to grow by 5.4% in 2021.
Specifically, the report predicts that the economy of advanced economies will shrink by 8% in 2020, and emerging markets and developing economies will shrink by 3%, down 1.9 percentage points and 2 percentage points respectively from April. Among them, the US economy will shrink by 8%, the euro zone economy will shrink by 10.2%, and the Japanese economy will shrink by 5.8%, both lower than the April forecast.
For 2021, the report predicts that the economies of advanced economies will grow by 4.8%, and emerging markets and developing economies will grow by 5.9%. The economies of the United States, the euro area and Japan will grow by 4.5%, 6.0% and 2.4% respectively.
The IMF said that all countries should ensure that the health care system has sufficient resources. The international community should strengthen its support to countries, especially provide financial assistance to countries with limited medical and health capabilities, and with the progress of vaccine trials, introduce funds into vaccine production, so that all countries can quickly obtain sufficient quantities and affordable vaccines.
The IMF emphasizes that strong multilateral cooperation remains crucial. IMF chief economist Gita Gopinat said that the world should strengthen cooperation in various fields to deal with this real global crisis, focus on solving trade and technological tensions, and improve the rules-based multilateral trading system. (Finish)