IMF: US Economy “at High Risk” due to Coronavirus

SANAA, July 18 (YPA) – As America has recorded more than 70,000 cases of Coronavirus (COVID-19), International Monetary Fund (IMF)’s experts warned that US economic output is expected to contract by 6.6% in 2020 due to the shock of the coronavirus pandemic.

However, those expectations may be worse as a new escalation of coronavirus infections and an increase in poverty.

After completing a review in accordance with Article IV of the world’s largest economies, IMF experts pointed to other risks:

– Significantly increase levels of government and corporate debt.

– The potential for low or possibly a lower inflation.

The IMF said the resurgence of COVI-19 infections represents the “main threat” to the  US economy and urged authorities to “make new efforts” to combat the epidemic and address social and economic challenges in the United States.

The International Monetary Fund (IMF) estimated that US GDP contracted by 37 percent in the second quarter of the year on an annual basis, as a direct result of containment measures “despite unprecedented political support.”

“There is a huge uncertainty surrounding the scale of the economic shock of Coved-19… It will probably take longer to reform the economy and return activity to pre-pandemic levels.”

IMF called for more stimulus measures to help alleviate the crisis, as well as longer-term investments in areas such as infrastructure.

The IMF expects the US  economy to grow by 3.9 percent in 2021. But that will not be enough to make up for the recession caused by this year’s Coronavirus pandemic.

E.M