Author: IMF Staff
Affiliations: International Monetary Fund
Organization/Publisher: International Monetary Fund, Publication Services
Date/Place: October 16, 2020/USA
Type of Literature: Survey
Number of Pages: 204
Link: https://www.imf.org/en/Publications/WEO/Issues/2020/09/30/world-economic-outlook-october-2020
Keywords: Global Economy, Recovery, COVID-19
Brief:
On October 16th, 2020 the IMF released a report on the global economic outlook, risks, and policy priorities relating to the outbreak and spread of COVID-19. The report reveals that the global economy is up-surging after deep recessions due to the excessive Coronavirus lockdown in April. However, due to the continuing spread of the virus, many countries across the world have delayed the reopening and some are resuming lockdowns to halt the spread. Whereas the global economy’s path to return to pre-pandemic situations remains long, precarious, and prone to reversal, some developments that will affect output and employment include that the Chinese recovery rate has been faster than anticipated. The report also notes that social distancing will remain in 2021 and last even with improvements in therapies and the availability of vaccines. Governments need to develop effective decision-making procedures to secure stronger, equitable, and more resilient economic growth and to prioritize economic recovery, supporting vulnerable people and reinforcing the health care systems. The report also emphasizes the role of international cooperation to effectively address global health and economic crisis. In this regard, the report conveys that priority should be given to increase production capacities, and expand distribution channels so that all countries get access to an effective, safe, and affordable vaccine. Moreover, the report stresses the need for international assistance such as grants, debt relief, and concessional financing to emerging markets and developing countries. Finally, the report notes the IMF’s having increased lending facilities and financial assistance to more than 80 countries since the onset of the virus.
By: Jemal Muhamed, CIGA Research Associate
