The coronavirus pandemic is causing wider and deeper damage to the world's economic activity than first thought

The International Monetary Fund is slashing its 2020 global output forecasts.

The IMF says it now expects global output to shrink by 4.9 per cent, compared with a 3.0 per cent contraction predicted in April.

It now says a recovery next year, will be weaker than first thought, with global growth forecast at 5.4 per cent for the year compared to 5.8 per cent in the April forecast.