WASHINGTON, Oct 13 (Reuters) – The International Monetary Fund (IMF) issued “somewhat less grim” projections for the global economy on Tuesday as rich nations and China rallied faster than expected after coronavirus lockdowns. Although he cautioned that the outlook is getting worse for many emerging markets.
IMF forecasts for 2020 pointed to a 4.4% contraction of the world economy, an improvement over the expectation of a 5.2% decline forecast in June, when company closings were at their worst. .
Still, this is the worst economic crisis since at least the Great Depression, the Washington-based Fund said.
Global activity will expand again to 5.2% in 2021, according to the October World Economic Outlook (WEO) report, but the recovery will be slightly weaker than expected in June, partly due to extreme difficulties for many economies emerging markets and the slow reopening of production segments because the virus continues to spread.
The estimates reflected a revision of the influence of exchange rates on the purchasing power of nations, with a small increase in the position of advanced economies in world production.
(Reporting by David Lawder. Edited in Spanish by Marion Giraldo)