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
The Rising National Debt Means Fewer Jobs, Lower Wages for Young People
The national debt is growing faster than ever, and the consequences for the job market are serious.
The National Debt Can Crowd Out Investments in the Economy — Here’s How
Large amounts of federal debt could “crowd out” investments by the private sector, making the economy less productive and stunting wage growth.
Rising National Debt Increases Costs for American Families and Businesses
Federal fiscal policy is a significant but often overlooked factor in the affordability of vehicles, homes, and small business loans.