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With coronavirus infections rising in Australia, India, Spain, and Brazil and renewed weakness in the US economic data, economists cut 2020’s economic prospects in the July 3-29 polls. 

The global economy is now expected to contract by 4% this year or by about $3.4 trillion compared to the previous estimate of a 3.7% contraction made in June. The latest downgrade is the sixth consecutive from 3.1% growth forecast in January, according to Reuters. 

Key points (Source: Reuters)

Of all of the major economies, the proportion of forecasters who said the U.S. outlook had improved in the last month was, by far, the smallest.

For the eurozone, the outlook for next year onward got a slight boost after the European Union leaders agreed on a stimulus package of 750 billion euros.

The world economy is expected to grow 5.3% next year, slightly less than the 5.4% predicted last month.