This is the IMF’s latest take on the economy in 2020

Despite notes of optimism, the latest predictions have been revised down slightly, reflecting negative surprises in a few emerging market economies, India in particular.

Here is a reality check:

  • Climate change is already having an impact on the global economy.
  • Countries must ensure the vulnerable are protected in order to maintain social cohesion.
  • Despite the note of optimism, significant risks remain.

Global economic growth is projected to be 3.3% in 2020 and 3.4% in 2021, according to the IMF’s latest World Economic Outlook, which has been unveiled in Davos.

This is higher than the estimated growth of 2.9% in 2019, pointing to a sluggish recovery and the tentative stabilization of the world economy.

There are signs that manufacturing activity and global trade have reached their lowest point, while the risk of a no-deal Brexit and a US-China trade war have lessened.

If these early signs of stabilization persist, both consumer and business spending are likely to improve, further boosting the economy.

Read full report here