IMF forecasts 2020 global economic contraction at 4.4% vs. 5.2% in June
|In its latest World Economic Outlook report, the International Monetary Fund noted that it forecasts the global economy to contract by 4.4% in June, compared to 5.2% contraction in June's publication, as reported by Reuters.
Additional takeaways
"IMF forecasts 2021 global growth at 5.2% vs 5.4% in June, forecasts use revised purchasing power parity weightings."
"IMF forecasts US 2020 contraction at 4.3% vs 8.0% in June; 2021 US growth at 3.1% vs 4.5% in June."
"IMF forecasts China 2020 growth at 1.9% vs 1.0% in June; china 2021 growth forecast unchanged at 8.2%."
"IMF forecasts eurozone 2020 contraction at 8.3% vs 10.2% in June; 2021 growth seen at 5.2% vs 6.0% in June."
"Improved forecasts due to somewhat less dire Q2 contraction, stronger-than-forecast Q3 rebound as advanced economies and China reopened."
"2020 contraction in emerging markets, excluding China, worsens to 5.7% from 5.0% in June forecast."
"Worse outlook for emerging markets ex-China reflect the continued spread of the virus, greater dependence on tourism, remittances, commodities, external finance."
"Industrial output rebounding in US, China, Europe and Brazil but services, consumer spending lagging, Q4 reopening momentum slowing."
"Countries should continue to support idled workers and firms to avoid 'scarring' that will reduce future growth potential."
Market reaction
This report doesn't seem to be having a significant impact on market sentiment. As of writing, the S&P 500 futures were down 0.27% on a daily basis at 3,523.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.