The International Monetary and Financial, (IMF), has said it is now
clear the world economy is in a recession and recovery may only be in
2021. The IMF Managing Director Ms Kristalina Georgieva gave the
indication yesterday at a call conference press briefing of the
International Monetary and Financial Committee (IMFC). “We have
reassessed the prospect for growth for 2020 and 2021.
It is now
clear that we have entered a recession – as bad as or worse than in
2009,” she said. “We do project recovery in 2021-in fact there may be a
sizeable rebound, but only if we succeed with containing the virus –
everywhere – and prevent liquidity problems from becoming a solvency
issue” she explained further.
The IMF is also worried about the
long-lasting impact of the sudden stop of the world economy because of
the risk of a wave of bankruptcies and layoffs that not only can
undermine the recovery but can erode the fabric of our societies. To
avoid this happening, she said “many countries have taken far-reaching
measures to address the health crisis and to cushion its impact on the
economy – both on the monetary and on the fiscal side.”
“The G20
yesterday reported fiscal measures totaling some 5 trillion dollars or
over 6 % of global GDP. It is important for those ahead in taking action
to share their experience with those still behind.
To support
this, last night the IMF launched a policy actions tracker for 186
countries to help us all to see who is doing what. We will be updating
this information regularly and will provide country-specific analysis in
line with our surveillance mandate,” she explained.
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