IMF estimates that the end of the global economic crisis is still far away

The managing director of the IMF, Kristalina Georgieva, analyzed the world economic scenario on Wednesday in the face of the ravages caused by the coronavirus pandemic, the confinement measures, the rebound in infections in several countries with the need to restore the quarantine and other factors.

Georgieva estimates that despite the fact that some economies show a slight recovery, the way out of the global economic crisis is still a long way off. In a meeting with the chief economist of the organization, Gita Gopinath, Georgieva stressed that “governments should continue to support workers and businesses because the unprecedented characteristics of this crisis could generate a wave of bankruptcies and job destruction “.

The relaxation of confinement measures has allowed some companies to reopen their doors with rigorous protection measures for their workers. However, the rebound in production, consumption and employment is modest.

The president of the IMF believes that “the impressive scale and speed with which governments mobilized resources has helped to cushion the blow and allowed this initial rebound.” But she warns: “This crisis, however, is far from over. The recovery remains very fragile and is uneven across different regions and sectors. To ensure that the recovery continues, it is essential that this support is not withdrawn prematurely. “.

Both Georgieva and Gopinath stress that governments must be cautious about the way resources are distributed. Unfortunately, they added, the number of companies that will go bankrupt will be high, particularly in highly affected sectors such as tourism.

M.Pino

Source: bancaynegocios