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Dubai, United Arab Emirates (CNN) – The International Monetary Fund cut its forecast for 2021 yesterday, as the organization expects a 5.2% increase in global production next year, compared to expectations of the 5.4% in its previous report.
However, despite the decline in expectations for next year, the IMF said in its October World Economic Outlook that the contraction forecast for this year is less severe than expected in June, as it will reach 4.4% in 2020.
These improved expectations are driven by better-than-expected performance in the US and Europe following the lifting of the blockade, as well as the return of the Chinese economy to growth.
Production in advanced economies and emerging markets excluding China is expected to remain below 2019 levels next year, said Gita Gopinath, chief economist at the International Monetary Fund.
The International Monetary Fund has warned that slow growth during this protracted period will have major repercussions, including worsening inequality and a “severe setback” to improving living standards, both in advanced economies like the United States and in the United States. emerging markets such as Mexico and Argentina.
The Fund has also readjusted its forecasts for countries in the Middle East and North Africa region, which you will learn about in the infographic above:
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