In its April projection, the IMF saw the global economy contracting by 3% in 2020.
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 2021 global growth is projected at 5.4%, from 5.8% forecast in April.
As with the April 2020 projections, there is a higher-than-usual degree of uncertainty around this forecast. The baseline projection rests on key assumptions about the fallout from the pandemic, the IMF said.
The IMF now sees the US economy contracting 8% this year, while the euro area’s economy is seen declining 10.2%.