August 3, 2020

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.

Economists project that the economy will shrink significantly in 2020

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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.

The IMF projects that the economies of G7 countries will contract significantly in 2020, while China's economy is expected to grow slightly

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Projected changes in GDP growth is one of many fiscal and economic indicators showing the strain of the coronavirus pandemic and policy responses to it.

Learn more about the economic impacts.


Related: See How the Coronavirus Has Impacted 10-Year Projections for Unemployment, GDP, Inflation, and Interest rates


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