Washington, July 17: The US economy, despite signalling a recovery in May, was slashed drastically in the subsequent month leading a total plunge of 37 percent in the second quarter, said the International Monetary Fund (IMF) on Friday. In the year 2020, the country is expected to suffer a total contraction of 6.6 percent in its economy, the IMF warned.

The resurgence in coronavirus pandemic in several states, including the economically crucial - Florida, Georgia, Texas and California - a renewed lockdown is being imposed. While the move is necessitated to save lives, a prolonged shutdown is adversely impacting the economy. Indian Economy to Contract by 4% in 2020-21: Asian Development Bank.

"The principal risk, and one that is the most difficult to quantify, is that a resurgence in the number of COVID-19 cases in the US could lead to renewed, partial shutdowns," the IMF said in in its annual Article IV report on the state of US economy.

Update by AFP

The deterioration is continuing despite the "unprecedented policy support being provided to the economy", said the global financial body, adding that those at the bottom half of the economic ladder will be the worst-affected due to the free-fall.

President Donald Trump, who is campaigning for a re-election in the November presidential polls, has vowed to rebuild the economy within a few months. America will witness one of the best turnarounds, he has reiterating, while blaming China and the World Health Organisation (WHO) for the COVID-19 outbreak to turn into a pandemic.

(The above story first appeared on LatestLY on Jul 17, 2020 10:23 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).