IMF slashes its forecasts for the global economy and warns of soaring debt levels

[Mike 03]

CNBC
PUBLISHED WED, JUN 24 2020 9:00 AM EDT

Excerpt:

U.S. economy to contract by 8%

Looking at country forecasts, the United States is expected to contract by 8% this year. The Fund had estimated a contraction of 5.9% in April.

Similarly, the Fund also downgraded its forecasts for the euro zone, with the economy now seen shrinking by 10.2% in 2020.

Brazil, Mexico and South Africa are also expected to contract by 9.1%, 10.5% and 8%, respectively.

In order to mitigate some of the economic impact from the pandemic, governments across the world have announced massive fiscal packages and new borrowing. As a result, public finances are seen deteriorating significantly as a result.

"The steep contraction in economic activity and fiscal revenues, along with the sizable fiscal support, has further stretched public finances, with global public debt projected to reach more than 100% of GDP this year," the Fund said.

Read more: https://www.cnbc.com/amp/2020/06/24/imf-global-economy-to-contract-with-coronavirus-recovery-slow.html

[NoMoreRepugs]

1. tRUMP is not going to like this "fake" story.

[unblock]

2. ouch, this means donnie will leave a smaller economy than when he started.

2020 will undo the growth of the last 3 years.

politically, this will turn another of lichtman's keys -- long-term economy -- average real gdp during the 4 years of the current administration being less than during the previous 8 years, and put another analytical nail in the coffin of donnie's re-election chances.

in other words, donnie's economic performance will be worse than the obama performance that the right always loved to complain about.

[uponit7771]

3. K&R, and a good portion of that is because of Red Don's reaction to CV19. We're getting worse