Photo: VCG

The International Monetary Fund (IMF) on Tuesday released its latest World Economic Outlook, predicting that the global economy will shrink by 4.4 percent this year, up 0.8 percentage points from the previous forecast in June. Growth is expected to rebound to 5.2 per cent in 2021, 0.2 percentage points lower than forecast in June.

The IMF said the world economy was still deep in recession and that the main reason for the upward revision was better-than-expected economic data in the second quarter and signs of a stronger recovery in the third quarter. This has been helped by extraordinary stimulus measures, with governments and central banks now providing about $12 trillion in fiscal support to households and businesses. The IMF said countries also must avoid a build-up of financial risks over the medium term.