IMF Releases Most Pessimistic Economic Projections for the United States to Date
Last Updated August 3, 2020
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 Fed Reduced Short-Term Rates, but Interest Costs Remain High
Higher short- and long-term Treasury rates mean that the federal government’s borrowing costs will also rise.
National Debt a Critical Election Issue for Swing State Voters
More than 9-in-10 voters across seven key states say it’s important for candidates to have a plan for the debt.
What is Inflation and Why Does it Matter?
Here’s an overview of inflation, why it matters, and how it’s managed.