Global economic outlook revision on the table amid COVID-19 crisis: IMF

Doaa A.Moneim , Wednesday 13 May 2020

IMF Managing Director Kristalina Georgieva speaks during a conference hosted by the Vatican on economic solidarity, at the Vatican, February 5, 2020. REUTERS

Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva said on Tuesday that the revision of the global economic outlook for 2020 is on the table, saying that the economic data that flow from the global market make a downward revision possible.

In statements on Wednesday, Georgieva said that the impacts of the COVID-19 pandemic on all economies across the globe make the economic indices under the expectations that set by the IMF and even worse than projected.

In April, IMF expected the global economy to experience a sharp drop by 3 percent in 2020, much worse than during the global financial crisis in 2008/2009.

It also expected that emerging markets and developing countries’ economies are expected to fall by 9.6 percent over 2020; however, they are projected to grow by 11 percent in 2021, according to the IMF’s estimations.

According to the IMF’s Economic Outlook Report, emerging markets and developing countries’ economies are expected to retreat by 1 percent Y-o-Y in 2020, and to grow by 6.6 percent Y-o-Y in 2021.

For Egypt, the report expects real GDP growth to drop to 2 percent in 2020, down from 5.6 percent in 2019, but is expected to rise to 2.8 percent in 2021.

It also projected that consumer prices, which set the inflation rate, will record 5.9 percent over 2020, and up to 8.2 percent in 2021.

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