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Risk asset prices have rebounded following the precipitous fall early in the year, while benchmark interest rates have declined, leading to an overall easing of financial conditions.

Global growth is projected at –4.9 percent in 2020, 1.9 percentage points below the April 2020 World Economic Outlook (WEO) forecast. The COVID-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and the recovery is projected to be more gradual than previously forecast.

Global growth is projected at –4.9 percent in 2020, 1.9 percentage points below the April 2020 World Economic Outlook (WEO) forecast. The COVID-19 pandemic has had a more negative impact on activity in the first half of 2020 than anticipated, and the recovery is projected to be more gradual than previously forecast.

According to the Asian Development Bank (ADB), Indonesia’s economy is expected to grow by 2.5% in 2020 amid the COVID-19 pandemic, down from 5.0% in 2019. The Economist Intelligence Unit (EIU) forecasted a 1.0% growth, and the International Monetary Fund (IMF) a 0.5% growth in 2020.

The International Monetary Fund (IMF) forecast in January that the global economy would grow by 3.3 percent in 2020, however its latest outlook, in April, now forecasts a contraction of 3.0 percent, with no upside scenarios and numerous risks.

The COVID-19 pandemic has created severe disruption in the global financial system, with many emerging market and developing countries (EMDCs) facing liquidity shortages.

The Coronavirus crisis could result in a catastrophic loss of life in poorer countries and push half a billion more people into poverty. Countries like the Central African Republic have just three ventilators for almost five million people, and Malawi has only a quarter of the nurses needed to provide healthcare for all.

The Covid-19 pandemic is taking a human toll and has unleashed a series of shocks on the Fund’s entire membership, creating severe disruption in the global economic and financial system.

The global economic recession and financial turmoil from COVID-19 are derailing implementation of the Addis Ababa Action Agenda and achievement of the Sustainable Development Goals (SDGs).

In the case of Zambia, The IMF projects that the economy will grow by a negative 2.6% in 2020 from the earlier projection of 3.6%. The economic adjustments due to COVID-19 will result in a severe drop in revenue. It is estimated that the budgeted revenue will fall short of target by at least K14.8 billion or 19.7 % of the approved 2020 budget.

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