By Julia Horowitz, CNN Business
London (CNN Business) - The International Monetary Fund has slashed its global economic forecasts for 2020, saying the coronavirus pandemic is causing a much steeper recession and a slower recovery than initially expected.
The organization said Wednesday that it thinks global GDP will contract by 4.9% this year, downgrading its estimate from April, when output was forecast to shrink by 3%.
That was already due to be the deepest slump since the Great Depression of the 1930s.
The pandemic is causing an "unprecedented decline in global activity," according to the IMF. It said the global labor market has taken a "catastrophic" hit, movement outside the home remains depressed, companies have cut back on investment and consumer spending has dropped significantly.
"The Covid-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and the recovery is projected to be more gradual than previously forecast," the IMF said in its report. Read more >>