July 17, 2020 / 4:12 PM / 19 days ago

U.S. economy faces significant risks, long road to recovery - IMF staff

WASHINGTON, July 17 (Reuters) - U.S. economic output is expect to contract by 6.6% in 2020 due to the shock of the coronavirus pandemic, but a resurgence in coronavirus infections and a systemic increase in poverty could worsen that outlook, the staff of the International Monetary Fund warned on Friday.

After concluding a regular Article IV review of the world’s largest economy, IMF staff cited other risks, including a big increase in government and corporate debt levels, and the prospect of a long period of low, or even negative, inflation.

“There are tremendous uncertainties surrounding the economic propagation of the COVID-19 shock,” the note said. “It will likely take a prolonged period to repair the economy and to return activity to pre-pandemic levels.”

Reporting by Andrea Shalal Editing by Chizu Nomiyama

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below