This day the International Monetary Fund reported that it foresees a 4.% contraction in the economy in 2020 due to the “negative impact” that the pandemic has had on the Covid-19.De fact, only China will maintain in positive numbers with 1% growth, but the projection is two tenths less than estimated in April. The IMF report notes that “the Covid-19 pandemic has had a more negative than anticipated impact on activity during the first half of 2020, and the recovery is projected to be more gradual than previously anticipated”Also points to the fall in private consumption due to “the combination of a large adverse ‘shock’ of demand and a precautionary increase in savings” , as well as in business investment due to “the deferral of capital expenditure, given the high uncertainty”. As long as Latin America and the Caribbean will be greatly affected in its economic activity as it predicts that it will collapse by 9.4% this year, 4.2 points more than the April estimates.” In Latin America, where most countries are still struggling to contain infections, we expect the two largest economies, Brazil and Mexico, to contract by 9.1% and 10.5%, respectively, by 2020,” the document states.
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