IMF: Deeper-than-expected Q2 Contraction of U.S. Economy

The lockdown in the U.S. has lasted longer than expected despite a rollback in some restrictions on mobility, pointing to a deeper-than-expected contraction in gross domestic product in the second quarter, the International Monetary Fund said.

Details will be available when the IMF releases its updated World Economic Outlook on Wednesday, spokesman Gerry Rice shared. Given the continuing lockdowns, the pace of recovery in the world’s largest economy could be slower, he said, without giving an exact forecast.

He added the Chinese economy was gaining momentum, with data showing a stronger-than-expected recovery in investment and services through May. But overall, the balance of risks remained on the downside.

IMF Managing Director Kristalina Georgieva and other officials have said the IMF is likely to revise downward its already pessimistic forecast for a three-percent contraction in global gross domestic output in 2020.

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