WASHINGTON, DC, United States (AFP) — The dominant risk to the US economic recovery is a resurgence of COVID-19 cases that would force renewed business shutdowns, the International Monetary Fund (IMF) warned yesterday.
The US Government will need to do more in coming months to provide support to households and boost demand, as well as address worsening poverty and the shortcomings of the US health system, the IMF said in its annual review of the world’s biggest economy.
“Even with the unprecedented policy support being provided to the economy,” the US suffered a 37 per cent collapse in GDP in the second quarter, and the economy is expected to contract by 6.6 per cent in 2020, the fund said, stressing the “tremendous uncertainties” surrounding the outlook.
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