IMF predicts deeper than expected global recession

Text by: RFI Follow

The International Monetary Fund announced on Wednesday June 24 that it now plans to contract global GDP by 4.9% this year, compared to 3% in April. All regions of the world are affected by the pessimistic projections of the financial institution.

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The economic outlook established by the International Monetary Fund is bleaker than expected. The recovery will be much slower than expected. The IMF is now counting on a contraction in world gross domestic product of 4.9%, against 3% in April.

Behind these figures, a social catastrophe threatens the States. The crisis will lead to numerous bankruptcies and mass unemployment. While partial unemployment measures have helped limit layoffs in Europe, the United States has seen its unemployment rate jump to more than 13% .  

Certain sectors are more affected than others, such as services or aviation. In industry or construction, companies face health restrictions. Next year, the recovery should be less sustained than initially expected, at 5.4%. Provided that a second wave of coronavirus does not strike by then.

No country is immune to pessimism. Starting with China, where the coronavirus left at the end of 2019. The growth of the Asian giant could be 1% this year, far from the 6.1% achieved previously. The crisis is even more catastrophic for the United States. The world's leading power will see its economy collapse by 8%. 

Everywhere else in the world the figures are catastrophic: - 10.2% in the euro zone, - 9.4% in Latin America and the Caribbean. Sub-Saharan Africa will not be spared with a 3.2% drop in GDP. Two countries are particularly affected: Nigeria and South Africa. 

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