The impact of the pandemic in the fashion industry on the global economy was worse than expected in April of this year, so now it is predicted that global growth in 2020 will fall to a minus of 4.9% (previously estimated to minus 3%).
“Compared with our April report “prospects of development of world economy” now we are forecasting a deep recession in 2020 and slower growth in 2021-th. So, global growth is projected at minus 4.9 percent by the end of 2020, which is 1.9% points lower than expected in April 2020,” said Gopinath.
This was stated during a briefing on Wednesday, June 24, IMF chief economist, Director, research Department Gita Gopinath.
As for the prospects for 2021, the IMF forecast also worsened: positive dynamics is expected to plus 5.4 percent compared to 5.8 percent predicted over two months ago.
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While chief economist at the Fund said that now the recovery of the economy started about 75% of the countries. “However, in the absence of medical decisions (in response to pandemic – ed.) the power of that recovery remains highly uncertain, and the impact on sectors of the economy and the country – is quite uneven,” said Gopinath.
At the same time, according to her, in some other countries, especially emerging markets, pandemic intensifies, which only adds to the uncertainty.
The parties noted the negative impact of the pandemic, especially for families with low income, which threatens efforts to reduce extreme poverty in the world since the 1990-ies.
As highlighted in the report “prospects for the global economy”, updated version of which was published on Wednesday, the baseline forecast is based on the key predictions of the impact of the pandemic and may be changed.