IMF sounds brighter tone for world economy amid COVID-19

The Managing Director of the International Monetary (IMF) Fund Kristalina Georgieva has said that the world economy is rebounding “from the depths of this crisis.

The Senior IMF official said the International Monetary Fund will go through this year’s global economic forecast that has been significantly weakened by the novel coronavirus lockdown measures after it gained strength more than expected since June.

She said, “But this calamity is far from over.” “All countries are now facing what I would call the long ascent.”

The official said the unparalleled action taken by central banks and finance ministries had been a key factor in softening the impact of the pandemic.

Georgieva said the IMF was continuing to project a partial and uneven recovery in 2021. In June, it forecast 2021 global growth of 5.4pc.

However, the $12 trillion in fiscal support, together with unequaled monetary easing, has allowed many advanced economies, including the United States and the eurozone, to escape the worst damage of the pandemic, and some business sectors proved more able to operate amid it.

She added that China also has recovered faster than expected.

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Earlier  International Monetary Fund said it is expected to provide an emergency fund of around $25 billion for 70 countries as the novel coronavirus pandemic continues to grip the world.

Spokesperson Gerry Rice said at a virtual press briefing that “We expect that number to be 70, so 70 countries supported by the IMF with emergency financing roughly about $25 billion.”

“This emergency financing is very fast-disbursing, countries receive the money within days, it does not carry traditional IMF conditionality,”

“It is money to be spent on paying for things like nurses’ and doctors’ salaries, and equipment, and medical equipment to deal with the crisis.”

For the Asia and Pacific region, seven countries have received emergency financing totaling about $1.5 billion, Rice said.