The International Monetary Fund is likely going to forecast a worse contraction in the global economy than earlier estimated for 2020 and sees 'profound uncertainty' about the part of recovery, the IMF chief economist Gita Gopinath stated in a new blog.

Gopinath said the current economic crisis was more global and playing out differently than past crises, with the services sector hit harder than manufacturing in both advanced and emerging market economies, and inflation low across the board.

IMF to Forecast Contraction

Recession
Recession Pixabay

She further mentioned a striking divergence of the financial markets from the real economy, that could portend the greater volatility in the financial markets and also the probable sharp connections.

(With agency inputs)