The fast-spreading coronavirus will have an impact on global economic growth and the International Monetary Fund is likely to downgrade its growth forecast as result, an IMF spokesman said on Thursday, reported Reuters.
IMF Managing Director Kristalina Georgieva flagged the expected downgraded on Saturday during a meeting of finance officials from the world’s 20 largest economies in Riyadh. In a statement, she said the virus outbreak would likely lower China’s economic growth this year to 5.6%, down 0.4 percentage point from its January outlook, and shave 0.1 percentage point from global growth.
“We are likely to downgrade our growth projections for the world,” IMF spokesman Gerry Rice told a regular briefing. He added that he had no new numbers beyond those in Georgieva’s statement, but said more details would emerge as the IMF prepared to release a new World Economic Outlook in April.