IMF chief warns unlikely global economic recovery in 2021

WASHINGTON: The Global economy It will take much longer to fully recover from the shock caused by the new than initially expected. International Monetary Fund he said, and she emphasized the danger of protectionism.

The Managing Director said the Fund will likely revise down its forecast of a 3% contraction in GDP in 2020, but did not elaborate. That is also likely to trigger changes in the Fund's forecast for a partial recovery of 5.8% in 2021.

In an interview with Reuters, he said the data from around the world was worse than expected. Obviously, that means that it will take us much longer to fully recover from this crisis, Georgieva said in an interview. She did not give a specific date for the rebound.

In April, the global lender predicted that company closings and closings to stem the spread of the virus would lead the world into the deepest recession since the Great Depression of the 1930s. But the data reported since then points to more bad news, Georgieva said earlier this month.

the IMF is due to release new global projections in June. the global outlook remains a huge focus for finance ministers from the Group of Seven advanced economies, who will meet remotely on Tuesday, according to the U.S. Treasury.

Georgieva dijo a Reuters que el Fondo se enfocó en riesgos tales como altos niveles de deuda, mayores déficits, desempleo, quiebras, mayor pobreza y desigualdad durante el período de recuperación. Pero dijo que la crisis también estaba impulsando la economía digital, ofreciendo una oportunidad para impulsar la transparencia y el aprendizaje electrónico, y dar acceso incluso a las pequeñas empresas a the mercados.

Cuando se le preguntó sobre las renovadas tensiones entre Estados Unidos y China, las dos economías más grandes del mundo, Georgieva dijo que estaba instando a the países miembros a mantener una comunicación abierta y flujos comerciales que hayan sustentado el crecimiento global durante décadas.

Necesitamos mantener abiertos the flujos comerciales, especialmente para suministros médicos, alimentos y a largo plazo para encontrar una vía para superar lo que está sucediendo ahora con esta crisis, dijo Georgieva. Queremos continuar construyendo este futuro más próspero para todos al superar las cicatrices que pueden surgir de esta crisis.

Las tensiones entre Estados Unidos y China se han disparado en las últimas semanas, y the funcionarios de ambos lados sugirieron que un acuerdo difícil de lograr que desactivó una amarga guerra comercial de 18 meses podría abandonarse meses después de su firma.

Georgieva warned against withdrawing protectionism as a result of the crisis.

No debemos apartarnos de lo que ha funcionado para las personas en todas partes: una división del trabajo y la colaboración y el comercio, que permite que bajen the costos de bienes y servicios, que aumenten the ingresos y que la pobreza dentro de the países y entre países retirada , dijo a Reuters.

the IMF was created after World War Two to foster financial stability, facilitate trade and reduce poverty around the world. It has provided emergency financing to 56 countries since the crisis began and will decide on 47 additional requests as quickly as possible, Georgieva said.

An IMF spokesman said some $21 billion in emergency financing, which carries very low interest rates, had been disbursed thus far.

Georgieva said the Fund could also provide grants to help the poorest countries cover their debt service payments to the IMF through the end of the year, after raising new lending commitments from its members.

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