International Monetary Fund experts warned Friday that the US economic output is expected to shrink by 6.6% in 2020 due to the shock of the Corona virus pandemic. But those expectations could be worse due to a new escalation in the incidence of HIV infections and an increase in poverty.
After completing a review in accordance with Article IV of the world's largest economies, the IMF experts pointed out other risks:
Increasing levels of government debt and corporate debt significantly.
Low or possibly negative inflation potential.
The Fund considered the re-emergence of Covid-19 infections a "major risk" to the US economy, and urged the authorities to "make new efforts" to combat the epidemic and address social and economic challenges in the United States.
Estimates
The International Monetary Fund estimated that US gross domestic product contracted by 37% in the second quarter of the year on an annual basis, as a direct result of containment measures "despite unprecedented political support."
"There is tremendous haze surrounding the breadth of the Covid-19 economic shock ... It will likely take a longer period to reform the economy and return activity to pre-pandemic levels," the fund said in a statement.
He called for more stimulus measures to help alleviate the crisis, as well as longer-term investments in areas such as infrastructure.
The fund expected the size of the US economy to grow by 3.9% in 2021. But that will not be enough to compensate for the stagnation caused by the Corona virus pandemic this year.