The International Monetary Fund slashed its forecast for 2020 global GDP again, this time estimating a contraction of 4.9%. In April, the IMF estimated a decline of 3%.
“We are now projecting a deeper recession in 2020 and a slower recovery in 2021,” wrote Gita Gopinath on the IMF’s blog. “The downgrade from April reflects worse than anticipated outcomes in the first half of this year, an expectation of more persistent social distancing into the second half of this year, and damage to supply potential.”
“A priority is to manage health risks even as countries reopen. This requires continuing to build health capacity, widespread testing, tracing, isolation, and practicing safe distancing (and wearing masks). These measures help contain the spread of the virus, reassure the public that new outbreaks can be dealt with in an orderly fashion, and minimize economic disruptions. The international community must further expand financial assistance and expertise to countries with limited health care capacity. More needs to be done to ensure adequate and affordable production and distribution of vaccines and treatments when they become available,” Gupinath continued.
So what does Jim Cramer think?
He says that this might be an opportunity for gold.
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