IMF Latest Forecast Adds Pressure Against Europe- Economy Remains Risky!

 The International Monetary Fund institution on Tuesday has slightly changed its outlook on the view that the global economy is expected to be slightly more positive this year. However, the IMF warns that economic recovery is expected to take longer and be uncertain.

The global economy is expected to contract by 4.4% by 2020 compared to previous forecasts which are expected to contract by 4.9% in June. The IMF projections also anticipate that social imprisonment will continue until 2021.

The reading modification was driven by advanced economic growth and China also recorded a more rapid recovery in the third quarter. On the other hand, the global economy is expected to recover but it takes time and full of uncertainty as the prospects in some developing economies are increasingly labor-intensive.

The US economy is expected to contract by 4.3% this year and some economies such as the UK, France, Italy and Spain will contract around 10%.

The IMF also warns and advises the government to implement policies wisely to prevent revenue distribution gaps despite rising public debt.

Finally, the IMF also stressed that geopolitical tensions, trade conflicts, natural disasters, changes in financing conditions and further pandemic transmission remain a risk of declining IMF projections.