“A second major global wave of the disease could cause further disruption,” warned the head of the IMF.
Washington, United States:
Despite some signs of recovery, the global economy is facing persistent challenges, including the possibility of a second wave of COVID-19, and governments should keep their support programs in place, the IMF chief said Thursday. Kristalina Georgieva.
The activity “has started to gradually strengthen … But we are not out of the woods yet,” said Georgieva in a message to the G20 finance ministers before their weekend meeting in Saudi Arabia.
Washington-based crisis lender at the end of last month has downgraded its growth forecasts, and now expects global GDP to fall 4.9% this year due to the deeper contraction in closings than expected, and only a “lukewarm recovery is expected for next year”.
The $ 11 trillion in stimulus provided by G20 countries has helped prevent a worse outcome, but “these safety nets must be maintained as needed and, in some cases, expanded,” Georgieva urged in a blog post.
She focused on measures such as paid sick leave for low-income families and access to health care and unemployment insurance.
But the recovery faces risks, she said, including the possibility “that a second major global wave of the disease could lead to further disruption”.
Even though she acknowledged that “substantial and growing debt levels are a serious concern,” said Georgieva, “at this point in the crisis, however, the costs of premature withdrawal are more important than continued support there.” where it is needed. “
Many countries have decided to reopen their doors. “Clearly, we have entered a new phase of the crisis,” she said in a blog post, adding that “more political agility and action are needed to ensure a sustainable recovery and shared “.
Many of the jobs lost during the pandemic may never come back, so workers will need support and training to move to new areas.
“The bottom line is that the pandemic is likely to increase poverty and inequality,” she said, but noted that policymakers have “a unique opportunity in a century” to build a world. better, greener and fairer.
(With the exception of the title, this story was not edited by GalacticGaming staff and is published from a syndicated feed.)
