The International Monetary Fund’s lowered outlook for the global economy is a “wake-up call” signaling the worst is not behind us, says former IMF adviser, Josh Lipsky.
”To imagine we can snap out it, just because pent-up demand has led to a surge in the last few months is naive thinking,” Lipsky told Yahoo Finance.
On Wednesday, the IMF lowered its forecast for the global economy, expecting a contraction of 4.9% for 2020. The forecast is a remarkable downgrade from the IMF’s -3% projection in April, making it the worst print in the report’s history.
For the first time, the IMF projects negative growth in every region of the world, as some areas re-open their economies and concerns of more coronavirus cases resurface.
“Even though countries are opening up, people are not spending … They’re saving more.” said Lipsky. “The fear factor, the rise in infections, all of that