IMF: Global economy to contract 4.4% in 2020
International Monetary Fund Chairwoman and Managing Director Kristalina Georgieva predicted the global economy would contract by 4.4% by the end of 2020 as a result of the coronavirus pandemic and remain “well below its pre-crisis growth path” despite the expected recovery of 5.2% in 2021.
“Inflation is expected to remain subdued, as weak demand outweighs the impact of supply chain disruptions on prices,” she said. “We fully support efforts to enhance the international architecture for resolving sovereign debt problems, and we welcome the G20 debt service suspension initiative and the Common Framework for Sovereign Debt Resolution. And we will continue to work with the World Bank on a case-by-case basis to support debt restructuring where this is necessary.”
Georgieva previously advised countries worldwide to use fiscal measures to support their economies during the ongoing crisis.
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