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Economy

IMF slashes world economy forecast further to negative 4.9% growth

Fund had predicted 3% contraction in April

The IMF says the impact of lockdowns and social distancing will weigh on both investment and consumption.   © Reuters

WASHINGTON (Reuters) -- The coronavirus pandemic is causing wider and deeper damage to economic activity than first thought, the International Monetary Fund said on Wednesday, prompting the institution to slash its 2020 global output forecasts further.

The IMF said it now expects global output to shrink by 4.9%, compared with a 3.0% contraction predicted in April, when it used data available as widespread business lockdowns were just getting into full swing.

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