Connect with us

Coronavirus (Covid-19)

Global recovery unlikely to happen next year – IMF

Published

 on 

PHOTO: Kristalina Georgieva - Getty Images

The head of the International Monetary Fund says the global economy is going to take longer than initially thought to recover fully from the shock caused by the Covid-19 coronavirus. She’s also warning against the danger of protectionism. Kristalina Georgieva says the Fund is likely to revise its forecast for a 3% contraction in GDP in 2020 downward, but gave no details. Such a revision would likely trigger changes in the Fund’s forecast of a partial recovery of 5.8% in 2021. In a Reuters interview, she said data from around the world was “worse than expected.”

“Obviously that means it will take us much longer to have a full recovery from this crisis.”

She gave no specific target date for a rebound. In April, the global lender forecast that business closures and lockdowns to slow the spread of the virus would throw the world into the deepest recession since the Great Depression of the 1930s. But data reported since then points to “more bad news.”

The IMF is expected to release new global projections in June. The global outlook remains a major focus for finance ministers from the G7 advanced economies, who will meet remotely today, according to the US Treasury.

Georgieva says the Fund is focused on risks like high debt levels, increased deficits, unemployment, bankruptcies, increased poverty and inequality during the recovery period. But she says the crisis is boosting the digital economy, offering a chance to increase transparency and e-learning, and give even small firms access to markets.

Georgieva warned against retreating into protectionism as a result of the crisis.

“We should not turn away from what has worked for people everywhere: a division of labor and collaboration and trade, which allows the costs of goods and services to go down, allows incomes to go up, and allows poverty within countries and across countries to retreat.”

SOURCE: The New York Times

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Jack Burton is an American writer, broadcaster, linguist and journalist who has lived in Asia since 1987. A native of the state of Georgia, he attended the The University of Georgia's Henry Grady School of Journalism, which hands out journalism's prestigious Peabody Awards. His works have appeared in The China Post, The South China Morning Post, The International Herald Tribune and many magazines throughout Asia and the world. He is fluent in Mandarin and has appeared on television and radio for decades in Taiwan, Mainland China, Hong Kong and Macau.

Follow Thaiger by email:

Thailand9 mins ago

Motorbike taxi driver saves teenager from suicide in eastern Thailand

South1 hour ago

UPDATE: BRN insurgents admits to Deep South bombings

Crime1 hour ago

Alleged kidnapper arrested, girl reunited with parents after months

Cannabis1 hour ago

New govt bill on cannabis hopes to clear blurred lines in Thailand

Crime1 hour ago

Famous Thai actress “Pinky” jailed for Forex-3D scam, denied bail

Chon Buri2 hours ago

Father tragically drowns while fishing in Chon Buri pond

Join the conversation on the Thaiger Talk forums today!
Crime2 hours ago

South African’s life sentence reduced to 33 years for drug trafficking in Thailand

Thailand2 hours ago

PM’s office is one of Thailand’s top advertising spenders

What you get for $X3 hours ago

What $500,000 buys you for a condo in Phuket, Pattaya, Koh Samui, and Bangkok

Thailand3 hours ago

Health dept’s reply to rising food costs: ‘let them eat curry & rice’

Politics3 hours ago

Sri Lanka’s exiled president to head home after Thailand stay

Thailand3 hours ago

New Bill Restrictions for Cannabis use in Thailand | GMT

Thailand4 hours ago

Two Indians stopped for taking restricted goods to Bangkok

Thailand19 hours ago

Thailand News Today | Thais more relaxed about Covid-19

Bangkok19 hours ago

‘Win’ motorbike taxi drivers protest against GrabBike in Bangkok, Thailand

Thailand11 months ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand1 year ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism1 year ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket1 year ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism1 year ago

Phuket Thai food treats you need to try | VIDEO

Thailand1 year ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism1 year ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending