Since the United States is the world’s largest economy, it would make sense that it would have the biggest impact on global economic growth.
Using data from the International Monetary Fund (IMF), Bloomberg estimates that the U.S. is projected to account for about one-third of this year’s drop in global gross domestic product.
Germany and Japan will represent the second and third highest shares of global GDP contraction.
Overall, for 2020, IMF is expected GDP contractions of 5.9 percent in the U.S., 9.1 percent in Italy, seven percent in Germany, and 5.2 percent in Japan.
The IMF recently forecast that the global economy will contract three percent, the largest decline in a century. However, it does anticipate a six percent surge next year.
“Although essential to contain the virus, lockdowns and restrictions on mobility are extracting a sizable toll on economic activity. Adverse confidence effects are likely to further weigh on economic prospects,” the IMF said in its World Economic Outlook report, released this week.
Are 2021 projections realistic or optimistic?
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