However, it “only addresses a small share of the recently imposed tariffs and specifies minimum increases in China’s imports from the United States,” the IMF chief said. Apple, which relies on Chinese production, warned this week that iPhone supplies will be constrained. The IMF also said that … “Its global impact would be amplified through more substantial supply chain disruptions and a more persistent drop in investor confidence, especially if the epidemic spreads beyond China.”. The U.S. economy is expected to contract by 8% in 2020, but the IMF sees it rebounding 4.5% in 2021—slightly lower than the 4.7% it had previously forecast in April. In January, the IMF had estimated 3.4% growth for global GDP in 2021; this has now been revised up to 5.8% (although growth is expected to be coming from a lower base following 2020… “In fact, our estimates suggest that the managed trade provisions cost the global economy close to US$100 billion dollars,” she said. Beset by many other risks, including the paused but still-unresolved US-China trade war, the world is not in a good position to deal with a prolonged impact, she wrote in a blog post. The IMF forecast that China, where the virus emerged late last year, would be the only economy that grows this year, by just 1%. “A long-lasting and more severe outbreak would result in a sharper and more protracted growth slowdown in China,” she wrote. For this year, growth in advanced economies is projected at -6.1 percent. IMF Managing Director Kristalina Georgieva speaks at a news conference ahead of the World Economic Forum (WEF) in Davos, Switzerland January 20, 2020. “The truth is that uncertainty is becoming the new normal,” she said. The International Monetary Fund on Wednesday again warned that risks to the global economy “remain skewed to the downside,” in its customary report for the Group of 20 finance ministers and central bank governors who will be meeting in Saudi Arabia over the weekend. Income per capita is projected to shrink for over 170 countries. China’s current account surplus of 1.0% in 2019, projected to grow to 1.3% in 2020, was broadly in line with economic fundamentals, the IMF said in the report. Jul 30, 2020: IMF predicts economic recovery in Pakistan next year: Pakistan Economy: 0: Jul 10, 2020: IMF sees China economy to grow 1%, US GDP to shrink 8%, EU to contract 10.2% this year: World Affairs: 3: Jun 26, 2020 As reported by The Wall Street Journal, the IMF officially green-lighted the acceptance of China’s currency – the Yuan – into the IMF’s foreign exchange basket. The virus to date has left nearly 1,900 dead and sickened 72,000 in China, cutting off transportation and forcing many businesses to close their doors. WASHINGTON, Feb 19 — In the best-case scenario, the economic hit from the epidemic in China will be short-lived, but it comes as the global economy remains fragile, IMF chief Kristalina Georgieva said today.