The International Monetary Fund (IMF)predicted that the US economy would shrink 6.6 percent this year,
pounded by the coronavirus and the lockdowns meant to contain it.
The forecast is an upgrade from one the IMF made last month when it foresaw the American economy
contracting 8 percent in 2020.
But the lending organization warned that the US economy faces downside risks from a resurgence in COVID-19 cases
The United States economy virtually shut down in March and April
as Americans stayed home and businesses shut down to keep the coronavirus from spreading.
The economy shrank at a 5 percent annual pace in the January-March quarter and is expected to contract a record 35 percent from April through June.
Employers cut a record 20.8 million jobs in April but brought back 7.5 million workers in May and June as states began to reopen for business.
COVID-19 cases started rising again in early June, especially in the South and West, putting the economic recovery in jeopardy.
“The recent increase in infection rates in some states is already leading to a slowdown or partial reversal of reopening decisions,”
the IMF said in its annual assessment of the U.S. economy. (The IMF’s lower June forecast was part of a broader, global analysis.)