The IMF warned that the global economic crisis was far from over

IMF warns that the global economic crisis is “far from over”

The General Director and the Chief Economist of the IMF shared that this crisis will last for a long time, the ability to recover is still very fragile and uneven between regions and fields.

IMF Director General Kristalina Georgieva speaking at a press conference in Washington, DC, USA on March 4, 2020.  (Photo: AFP / VNA)
IMF Director General Kristalina Georgieva speaking at a press conference in Washington, DC, USA on March 4, 2020. (Photo: AFP / VNA)

World economy are showing signs of growth again after a period of severe decline due to the impact of the acute respiratory inflammatory epidemic COVID-19 but without an effective vaccine against the disease, the economic viability of a complete recovery is very low. This is the latest statement of the General Director International Monetary Fund (IMF) Kristalina Georgieva launched on 9/9.

Specifically, in the general analysis published in the journal Foreign Policy, both of you Kristalina Georgieva and IMF chief economist Gita Gopinath both emphasized that governments should continue to support workers and businesses because the “unprecedented nature” of this crisis can push the wave of bankruptcy. and job loss goes up.

As countries loosened blockades and global businesses resumed, output, consumption and employment indexes all rebounded sharply.

The rapid and large-scale supportive measures of governments have also helped increase the resilience of the economy and fuel the early recovery phase.

However, both IMF officials said that this crisis will last for a long time. Resilience remains very fragile and uneven across regions and sectors.

To ensure that the recovery momentum is maintained, it is important for countries to avoid ending economic assistance policies too soon. Businesses, even those that are insolvent, will still need support to avoid the risk of losing millions of jobs.

This requires governments to take steps like buying shares in companies or offering subsidies in return for higher taxes in the future.

But governments also need to be wary of how resources are being allocated, which are in a scarcity and sobriety, that some companies are bound to fail, especially in industries like tourism. survived or eliminated in the post-epidemic period.

Finally, IMF officials noted that although the world is “learning to live with the virus, a complete economic recovery is unlikely without a permanent medical solution.”

With about 128 vaccines under development, the chances of finding a solution are enormous, but “we need to urgently find multilateral solutions” to ensure a reasonable supply and distribution.

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