“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.
China's economy is "under pressure from weak consumer spending, rising unemployment and problems in the financial system."
The Institute of International Finance sees debt growth accelerating this year due to low interest rates and "loose financial conditions."
“While growth could be stronger if reduced trade tensions lead to a sustained reduction in uncertainty, the balance of risks is to the downside."
