After the deadly Coronavirus outbreak ends, in a bid to recover the global economy, International Monetary Fund’s chief economist, Gita Gopinath has suggested having “broad fiscal stimulus” that is coordinated across advanced economies of the world. The world economy has been severely impacted by the pandemic, therefore, the IMF wants global powers to come together for a joint effort to soften the blow.
Last week, IMF Managing Director Kristalina Georgieva had also said that the world is expected to witness the worst economic year since the Great Depression in the 1930s.
While Georgieva has said that over 170 countries would record negative per capita income growth due to COVID-19 outbreak, IMF chief economist urged countries to continue trade, especially of protective equipment.
IMF chief Gopinath also added that “world cooperation is critical” because the global economy would require a strong boost after the pandemic which is impossible if world leaders continue to “reverse the gains from globalization”.
IMF’s @GitaGopinath: We call on all countries to refrain from trade restrictions, especially on medical supplies. Global cooperation in this area is critical. The world needs a strong recovery and that will not come about if we reverse the gains from globalization. pic.twitter.com/CIAwwNcQxm— IMFLive (@IMFLive) April 14, 2020
.@GitaGopinath: The courageous actions of doctors and nurses need to be matched by policymakers all over the world so we can jointly overcome this #COVID19 pandemic crisis. #WEO https://t.co/pDNu0wORtp pic.twitter.com/pALQUsg3pU— IMFLive (@IMFLive) April 14, 2020
IMF has also predicted that in 2020 the growth of the Indian economy would be at the rate of 1.9 per cent as the Coronavirus outbreak and the impact of nationwide lockdown would take a toll on every sector.
JUST RELEASED: April 2020 World Economic Outlook. The global economy is projected to contract sharply by -3% in 2020 as a result of the #COVID19 pandemic, a much worse contraction than during the 2008–09 financial crisis. Read the latest #WEO https://t.co/93xXDRsg3B pic.twitter.com/LODuvMsrbA— IMF (@IMFNews) April 14, 2020