IMF: US Economy Will Drop 6.6% in 2020 in Face of Pandemic
WASHINGTON (AP) — The International Monetary Fund predicted that the coronavirus outbreak and the lockdowns meant to contain it will cause the U.S. economy to shrink 6.6% this year.
The grim forecast is actually an upgrade from one the IMF made last month when it foresaw the American economy contracting 8% in 2020.
But the 189-country lending organization warned that the U.S. economy faces downside risks from a resurgence in COVID-19 cases.
The IMF expects the U.S. economy to rebound to 3.9% growth next year.
But the unemployment rate will remain elevated, the IMF said, averaging 7.4% the last three months of 2021.