The group is now predicting a 4.5% contraction for this year, citing the swift recovery in output since coronavirus containment measures were eased.
Japan’s economy entered a recession even before the coronavirus pandemic and could be facing a long road to recovery.
“It’s a very deep and dark hole and we’re coming out of it, but it’ going to take a long time to get out.”
“If the economy fell this hard in the first quarter, don’t ask how far it will crater in the second quarter because it is going to be a complete disaster."
The Fund now expects the global economy to contract by 3% this year due to the coronavirus pandemic.
But downside risks to growth remain high as the spread of the coronavirus and duration of lockdowns remain “highly uncertain."
After the third-quarter contraction, “There is hope that the recent slight productivity uptick may lead to better results in the future."
“We saw a risk to the outlook of the economy [from the coronavirus outbreak] and we chose to act," Fed Chair Jerome Powell says.
“The virus risks giving a further blow to a global economy that was already weakened by trade and political tensions."
“Certainly, the economy isn’t firing on all cylinders, but it also doesn’t appear to be at risk of stalling out either.”
Watch out: Chief executives have long had an uncanny knack for predicting how the economy will fare in the next year — and for 2020, their outlook is dark.
"Changes in fiscal policy must be made to address the budget situation because our debt is growing on an unsustainable path," the CBO says.
