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Global finance leaders back stimulus

Global finance leaders on Tuesday said the world economy had so far escaped a collapse triggered by the COVID-19 pandemic, but warned that failure to conquer the outbreak, maintain stimulus and tackle mounting debt among poor nations could crush a fragile recovery.
At the start of the annual meetings of the IMF and World Bank, the fund issued slightly improved growth forecasts spurred by unexpectedly stronger rebounds from COVID-19 lockdowns in the wealthiest countries and China.
The IMF now forecasts world GDP would shrink 4.4 percent this year, compared with the 5.2 percent drop seen in June, according to the World Economic

Virus Outbreak: Global finance leaders back stimulus

FRAGILE RECOVERY: Governments must stay focused on their healthcare responses to COVID-19 and must not withdraw stimulus prematurely, IMF’s head said

Reuters, WASHINGTON and BRUSSELS

Global finance leaders on Tuesday said the world economy had so far escaped a collapse triggered by the COVID-19 pandemic, but warned that failure to conquer the outbreak, maintain stimulus and tackle mounting debt among poor nations could crush a fragile recovery.

At the start of the annual meetings of the IMF and World Bank, the fund issued slightly improved growth forecasts spurred by unexpectedly stronger rebounds from COVID-19 lockdowns in the wealthiest countries and China.

The IMF now forecasts world GDP would shrink 4.4 percent this year, compared with the 5.2 percent drop seen in June, according to the World Economic Outlook released on Tuesday.

People line up to scan contact tracing QR codes to enter a building in the Central Business District of Singapore yesterday. Photo: EPA-EFE

For next year, the IMF sees growth of 5.2 percent, down from 5.4 percent.

The report includes revisions to June’s forecasts and other historical data to reflect updated country weightings.

“The story is less dire than we thought three months ago, but dire nonetheless,” IMF managing director Kristalina Georgieva said during a panel discussion that was held virtually.

IMF managing director Kristalina Georgieva speaks at the Global Women’s Forum in Dubai, United Arab Emirates, on Feb. 16. Photo: Reuters

Georgieva said governments needed to stay focused on their healthcare responses to COVID-19 and must not withdraw stimulus prematurely.

“If we cut these lifelines that have been extended to families and businesses before we are out of the health crisis, this could be catastrophic in terms of bankruptcies, unemployment and undoing all that has been done so far,” she said.

The upward revision in the IMF’s growth forecast for this year reflects in particular better-than-projected second-quarter growth in the US and the eurozone, a stronger-than-expected return to growth in China and signs of a more rapid recovery in the third quarter.

The US economy is projected to…

台北時報

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