The head of the International Monetary Fund (IMF) has said that previous estimates for the world economy to contract by three per cent this year were too optimistic.

IMF Managing Director Kristalina Georgieva, during a video-linked conference in Florence, said that worsening indicators in some countries could weigh even further on this forecast.

“Incoming economic data for many countries is below our already pessimistic assessment for 2020,” Georgieva said. “And with no immediate medical solutions, more adverse scenarios might unfortunately materialise for some economies”.

In April, the IMF warned that the world economy would experience the worst downturn since the Great Depression.