Deep Recession

IMF’s ‘Deep Recession’ Talk Ignores Economic Reality

The head of the International Monetary Fund ( IMF ) says the global economy is “not out of the woods.” Yet it’s hard not to worry that Kristalina Georgieva is missing the forest through the trees.

The 4.4% contraction in world gross domestic product the IMF expects for 2020 is one thing. But the 5.2% growth it predicts for 2021 makes me wonder what’s in the water in Washington. It also suggests global elites are already being complacent about the need to up stimulus as Covid-19 fallout intensifies.

Other than China, after all, where are the 2021 growth engines? China, remember, remains an export power. So, without external growth China’s prospects top out pretty quickly. IMF

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