IMF to boost global outlook again, warns financial uncertain conditions
On Tuesday, IMF Managing Director Kristalina Georgieva said,” The International Monetary fund will raise its forecast for global economic growth in 2021 and 2022 after last year’s 3.5% contraction, but the financial condition remains highly uncertain.”
Georgieva said the global economy was on firmer footing after the government spent some $ 16 trillion on fiscal measures to contain the COVID-19 pandemic and mitigate its economic impact. However, developments are diverging dangerously across regions and countries, and even within nations.
”Vaccines are not yet available to everyone and everywhere. Too many people continue to face job losses and rising poverty,” she told the Council on Foreign Relations ahead of next week’s release of the fund’s updated World Economic Outlook.” Too many countries are falling behind.”
” We face the biggest test of our generation,” she said.” what we do now will shape the post-crisis world.”
Georgieva said the IMF would raise its January forecast for global economic growth of 5.5% in 2021 and 4.2% in 2022 due to increased fiscal spending in the United States and prospects for a vaccine-powered recovery in other advanced economies.
It will release the new forecasts next week.
Georgieva urged authorities to keep an eye on financial risk, including stretched asset valuations, and to take steps to prevent excessive financial volatility at home and abroad.
Small and medium-sized businesses needed further support, she said, warning of a sharp rise in expected insolvencies this year as countries cut back loans and grants.