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Output in both advanced economies and developing economies is projected to remain below 2019 levels even next year.
China's Gross Domestic Product (GDP) will grow by 1.9 percent in 2020 and 8.2 percent in 2021, according to the World Economic Outlook (WEO), a periodic report from the International Monetary Fund (IMF).
“We continue to project a deep recession in 2020. Global growth is projected to be -4.4 percent… In 2021 growth is projected to rebound to 5.2 percent, -0.2 percent below our June projection,” the WEO states.
“Except for China, where output is expected to exceed 2019 levels this year, output in both advanced economies and emerging market and developing economies is projected to remain below 2019 levels even next year. Countries that rely more on contact-intensive services and oil exporters face weaker recoveries compared to manufacturing-led economies.”
The IMF study shows that China's growth prospects are "much stronger" than those of the rest of the emerging economies, despite the impacts that the pandemic has generated in international markets.
The latest IMF World Economic Outlook forecasts the global economy will contract by 4.4% in 2020. Source: IMF pic.twitter.com/ciOhXYb1bu
"Activity returned to normal faster than expected after nearly the entire country reopened in April. In the second quarter, there was a positive surprise thanks to strong policy support and export resilience."
Unlike the above, the other major Asian economy, India, will suffer an economic collapse of 10.3 percent this year. In 2021, however, its GDP is expected to grow by 8.8 percent.
According to the IMF, Japan will register a contraction of 5.3 percent and Russia of 4.1 percent this year. In both cases, however, the economic situation will improve in 2021 when Japanese production could increase 2.3 percent and Russian production 2.8 percent.