IMF chief says coronavirus erases hopes for stronger growth in 2020

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IMF chief says coronavirus erases hopes for stronger growth in 2020
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The global spread of the novel coronavirus has crushed hopes for stronger growth...

WASHINGTON - The global spread of the novel coronavirus has crushed hopes for stronger growth this year and will hold 2020 global output gains to their slowest pace since the 2008-2009 financial crisis, International Monetary Fund Managing Director Kristalina Georgieva said on Wednesday.

The changed forecast would represent a more than 0.4-percentage-point drop from the 3.3% growth the IMF had estimated for 2020 in January as U.S.-China trade tensions eased. Georgieva and World Bank President David Malpass underscored the importance of coordinated action to limit the economic and human impact of the virus.

The shift has vastly increased uncertainty and caused demand worldwide to weaken, hitting trade and tourism hard and slashing demand for oil and other commodities as individuals and businesses take precautionary measures to avoid infection.

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