WASHINGTON - The International Monetary Fund on Tuesday said forecasts for the global economy were"somewhat less dire" as wealthy countries and China rebounded more quickly than expected from coronavirus lockdowns but warned that the outlook was worsening for many emerging markets.
The forecasts reflect revised foreign exchange weightings for purchasing power parity that slightly increase the influence of advanced economies on global output. The IMF said that the United States will see a 4.3 per cent contraction in GDP during 2020, considerably less severe than the 8 per cent contraction forecast in June.
CHINA TO SEE GROWTH China, which saw a strong early reopening and rebound from the pandemic, will be the only economy to show positive growth in 2020, of 1.9 per cent - nearly double the rate predicted in June - and reach 8.2 per cent growth in 2021, its highest rate in nearly a decade, the IMF said.