World Economy Outlook

The International Monetary Fund this week released the World Economic Outlook study to the media. The Global Economy will contract by 4.4% this year — a poor indicator, but better than the 5.2% drop predicted in June - according to an article in the Financial Times.

The prospects for economic recovery are different for individual states, according to the IMF study.

So, China, supported by significant export sales and a rapid reduction in the number of infections, expects growth of 1.9% this year. And this is a much more optimistic result than expected.

Meanwhile, the American economy and the economies of European countries are still facing a sharp decline, as they have not been able to completely eliminate the existing obstacles to economic growth, namely, to cope with the consequences of the COVID-19 epidemic.

In Latin America, the outlook for Mexico remains bleak, while the situation in Brazil has improved significantly.

Overall, countries that rely more on exports of manufactured goods to support growth are in a better position. While oil exporters, as well as those countries that rely on demand for domestic services, are in a less favorable position, the publication says.

The IMF emphasizes that all countries and internationa.organizations should not only fight the pandemic, but also work to reduce tensions in trade and technology, and remove obstacles that hinder economic recovery after the crisis.