IMF Releases Most Pessimistic Economic Projections for the United States to Date
The International Monetary Fund (IMF) estimates that real (inflation-adjusted) gross domestic product (GDP) in the United States will fall by 8 percent in 2020, according to the latest update to their World Economic Outlook report. The new projection is 2.1 percentage points below the previous projection that they released in April. The IMF is more pessimistic than other forecasters about the effect of the coronavirus (COVID-19) on the U.S. economy.
The IMF is also pessimistic about the economies of a number of other countries. For example, they estimate that the economies of both Italy and France will decline by more than 12 percent this year. Meanwhile, the IMF projects that China will experience growth of 1.0 percent in real GDP in 2020, making it one of only two countries (along with Egypt) included in the report to receive a positive projection for the year.
Image credit: Photo by iStock/Getty Images
Further Reading
What Is Stagflation, and How Would It Affect the National Debt?
Stagflation is rare, but when it does happen, it can have significant negative consequences for the economy and the national debt.
What Are Interest Costs on the National Debt?
Interest costs are on track to become the second largest category of spending in the federal budget.
Fed Raises Rates for First Time Since 2023 as Interest Costs Top $1 Trillion
High interest rates on U.S. Treasury securities increase the federal government’s borrowing costs.