IMF in its Global Financial Stability Update. The disconnect “raises the risk of another correction in risk asset prices,” the IMF said, adding that valuations across many equity and corporate bond markets appear “stretched.”The warning came just a day after the IMF slashed its 2020 global economic forecasts further.[ Sign up for our Health IQ newsletter for the latest coronavirus updates ]The IMF said it now expects global output to shrink by 4.9 per cent, compared with a 3.0 per cent contraction predicted in April, when it used data available as widespread business lockdowns were just getting into full swing.A recovery in 2021 also will be weaker, with global growth forecast at 5.4 per cent for the year compared to 5.8 per cent in the.