The US Economy to Shrink Up to -6,6% in 2020, IMF Predicts

The International Monetary Fund (IMF) Friday predicted that the U.S. economy would drop to -6.6 percent by 2020 and that the unemployment rate would be 9.7 percent.

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"Washington needs to deploy as soon as possible a new fiscal stimulus proposal to accelerate its economic recovery," IMF warned in a statement.

To prevent the new predictions, the U.S. administration must also promote its social safety net and it should facilitate a deep economic restructuring.

The IMF's July forecasts are modestly better than those made in June when a decline in U.S.' Gross Domestic Product (GDP) this year of -8 percent was anticipated.

Nevertheless, how and for how long the coronavirus will continue to impact the economy is still unpredictable. 

"The sudden drop in the workforce's demand will lead to the bankruptcy of an uncertain number of companies," the IMF warned.

In late March, Congress approved the largest fiscal stimulus package in the country's history, which included US$2.2 billion and contained subsidies for businesses and it reinforced contributions to unemployment insurance.

Currently, lawmakers and the White House are discussing an additional plan to help revive the economy, given the magnitude of the crisis caused by the coronavirus.