Without the historic intervention of governments and central banks to cope with the shock of the pandemic, the managing director of the International Monetary Fund said, the global economy would have entered a recession three times deeper than the contraction observed last year.International Monetary Fund), Kristalina Georgieva.
By participating in a conference at the highest level with the Secretary of the Treasury of the United States, Janet Yellen And the President of the World Bank, David MalpassThe directive estimated that rapid financial support, distributed in health emergencies by most of the world’s governments, amounted to $ 16 billion.
He warned that the huge challenge is to limit the impact of the shock of the epidemic on families, as well as small and medium-sized businesses, and to ensure that they have access to the resources to continue living.
Head of BMDavid Malpass, commented that as a result of this unprecedented effort by governments, the deterioration of public finances has worsened, leading to greater indebtedness that, if left unaddressed, could lead to a new cycle of international risks between emerging economies and those with limited resources.
At the same session, United States Treasury Secretary Janet Yellen commented that her country is making an important contribution to global growth, strengthening external demand and through supply chains. But he made clear that more efforts on the part of other advanced economies are needed to accelerate the recovery of all economies.
In particular, he stressed that advanced economies like the United States must incorporate into their strategies some way to ensure that years of progress in reducing global poverty are not wiped out by the pandemic.