24 Jul 2024
Saturday 27 June 2020 - 14:26
Story Code : 378465

CBI chief dismisses IMF's forecast of Iran's economy

FNA - Governor of the Central Bank of Iran Abdolnasser Hemmati categorically dismissed a recent forecast by the International Monetary Fund (IMF) about Iran's economy.

"Even CBI's most negative scenarios cannot confirm the forecast of minus six percent economic growth for Iran," Hemmati said in reaction to IMF's forecast.

In its very recent forecast on world economy, IMF has said that Iran's Gross Domestic Product, GDP, will decline by about six percent in 2020.

"IMF has made a mistake as it did so last year," the CBI governor added.

On Wednesday, the IMF slashed its forecast for annual global economic growth as the coronavirus cases spike in the US and developing countries.

The IMF is now projecting global economic gross domestic product (GDP) to fall 4.9 percent in 2020, 1.9 percentage points higher than the 3-percent decline the international lender projected in April, The Hill reported.

While the IMF expects global GDP growth to rebound to 5.4 percent next year, that rate is still 6.5 percentage points below the growth level projected by the IMF in January.

The emergence of the pandemic and the shutdowns imposed to fight it will cost the global economy more than $12 trillion over the next two years, said IMF chief economist Gita Gopinath in a Wednesday article.

The COVID-19 pandemic pushed economies into a Great Lockdown, which helped contain the virus and save lives, but also triggered the worst recession since the Great Depression, Gopinath wrote.

Over 75 percent of countries are now reopening at the same time as the pandemic is intensifying in many emerging market and developing economies. Several countries have started to recover. However, in the absence of a medical solution, the strength of the recovery is highly uncertain and the impact on sectors and countries uneven, she added.

The IMFs dire projections come amid increasing concern about the economic blow of rising coronavirus cases across much of the US and countries with far less developed medical infrastructures.

The daily number of new COVID-19 cases in the US is the highest it has been since April as several states around the country experience spikes in cases, according to data released by Johns Hopkins University on Wednesday.

Dr. Anthony Fauci, the US governments top infectious disease expert, called the increases disturbing during testimony before a House committee Tuesday, urging swift action to help slow the spread and track outbreaks in US hot spots.

Right now, the next couple of weeks are going to be critical in our ability to address those surgings that were seeing in Florida, in Texas, in Arizona and in other states, Fauci told the House Energy and Commerce Committee.

The US struggle to prevent broader outbreaks comes as developing countries abroad stare down staggering increases.

The deepening anxiety about the path of pandemic also shook Wall Street on Wednesday.
Your Name
Your Email Address