The International Monetary Fund is forecasting a bleak outlook for the U.S. economy in 2020, citing the economic disruption caused by the coronavirus pandemic.
In a report released on Friday, analysts with the IMF said they expect the U.S. economy to shrink up to 6.6% as government and corporate debt levels skyrocket in an attempt to ward off collapse.
“There are tremendous uncertainties surrounding the economic propagation of the COVID-19 shock,” wrote officials in the report. “It will likely take a prolonged period to repair the economy and to return activity to pre-pandemic levels.”
Analysts suggested that people in the United States will suffer “significant economic hardship” in the near future, which will make it difficult for “longer-term” growth expectations to materialize.
“The risk ahead is that a large share of the U.S. population will have to contend with an important deterioration of living standards and significant economic hardship for several years to come,” report said. “This, in turn, can further weaken demand and exacerbate longer-term headwinds to growth.”
The report urged U.S. government officials to rethink trade restrictions, which it says undermines global trade stability.
