Global growth is projected at –4.9% in 2020, according to
the June 2020 World Economic Outlook (WEO) forecast issued by the
IMF. It said 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.
Real GDP is predicted to decrease by 8% in the US and by 10.2%
in the Euro zone and the UK over 2020. In 2021 global growth is
projected at 5.4%. Overall, this would leave 2021 GDP some
6½ percentage points lower than in the pre-COVID-19
projections of January 2020.
So we can honestly say that the economy does not look in great
shape and, unfortunately, this is having a ripple effect on
foreign-owned business in China. Sovereign China has also felt
this, with many projects delayed, postponed or even cancelled. And
more upsetting, we have also seen an increase in company
closures.
