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In 2021, it is forecast to be 4.1 percent. Lithuania’s gross domestic product (GDP) growth.
In April, the IMF forecast that the Lithuanian economy would contract by 8.1 percent this year and grow by 8.2 percent next.
Forecasts from the World Economic Outlook announce that Lithuania will have 1.3 percent this year. average annual inflation. Prices are expected to grow 0.6% in Latvia and 0.2% in Estonia.
The GDP of Estonia and Latvia is expected to fall 5.2 percent this year, respectively. and 6 percent, and in 2021 – increase by 4.5 percent. and 5.2 percent, according to the latest IMF World Economic Outlook released on Tuesday.
The euro area and world economies will contract less than expected
The IMF has announced that the eurozone economy will contract by as much as 8.3 percent this year. – No such decline has been seen since the Great Depression in the 1930s. However, such forecasts are better than the 10.2% forecast in June. contraction.
As there is still no medical solution to the pandemic, the IMF has warned that the eurozone economy will grow by 5.2% in 2021 – less than the 6% forecast in June.
The fund’s forecasts for this year are better than the European Union’s (EU) forecasts, which estimated in July that the eurozone economy would contract by 8.7% this year. However, the Community was more optimistic for the following year, forecasting 6.1%. increase.
The IMF has also announced that the Spanish economy, whose GDP could contract by 12.8%, will suffer the worst in Europe. Italy’s GDP is likely to contract by 10.6% and France’s by 8.3%.
Germany, driven by exports, will contract 6 percent this year, the IMF said, as Asian demand has not recovered.
The British economy, which left the EU in January, will contract 9.8 percent in 2020 and suffer 5.9 percent in 2021. recovery, the IMF said.
The fund noted that failure to conclude a trade agreement by December 31 “would increase costs for companies and could disrupt long-term cross-border production agreements.”
The world economy will contract less than expected this year, 4.4 percent. on Tuesday. In June, the IMF forecast that world gross domestic product (GDP) would contract by 4.9 percent this year.
“In 2020, we expect a slightly easier but still deeper withdrawal,” said Gita Gopinath, the fund’s economic adviser, in the IMF’s World Economic Outlook report.
The forecast revision was prompted by an “unprecedented fiscal, monetary and regulatory response” that helped mitigate the impact of the coronavirus crisis in large advanced economies, Gopinath said.
“While the world economy recovers, the strengthening will be long, uneven and uncertain,” the economist warned.
In some emerging economies, where a growing number of COVID-19 cases are seen, forecasts have “deteriorated significantly” compared to estimates released in June.
The IMF also from 5.4 to 5.2 percent. it lowered forecasts for global economic growth for next year, and the pandemic continues to have unprecedented effects.
The fund warned that recovery was not assured as the coronavirus continued to spread and led to the imposition of restrictive measures and prevented the normalization of economic activity.
The IMF also asked governments not to withdraw financial assistance programs too soon.
Among other things, the fund added that the pandemic will have long-term consequences for many economies, increase poverty and increase inequality.
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