Global economic outlook better than June, but ‘not out of the woods’

Global economic outlook better than June, but ‘not out of the woods’

The global economic outlook is less bleak than projected in June, the International Monetary Fund (IMF) said on Thursday, hinting that the organisation’s forecasts for growth will be raised next month.

“Recent incoming data suggests that the outlook may be somewhat less dire” than projected in the Washington-based crisis lender’s World Economic Outlook published in June, spokesman Gerry Rice said, nothing that “parts of the global economy [are] beginning to turn the corner”.

As the coronavirus has moved through the world, economists have been forced to constantly revise their forecasts for growth.
The IMF is set to update its global outlook on October 13, although Rice did not reveal details about the new projection.

In its June forecast, the fund said world gross domestic product would drop by 4.9 per cent and the virus would wipe out US$12 trillion over two years

However, China and some other advanced economies performed better than expected in the second quarter of 2020, Rice said, partly due to the easing of lockdown measures after the near total shutdowns earlier in the year.

“This crisis, however, is far from over,” they wrote. “The recovery remains very fragile and uneven across regions and sectors. To ensure that the recovery continues, it is essential that support not be prematurely withdrawn.”
They cautioned that, “Though the world has learned to live with the virus, a full recovery is unlikely without a permanent medical solution.”

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