Pandemic. IMF warns that world economy is on extremely fragile ground


The world economy is on extremely fragile ground, despite signs of improvement in recent months, and the covid-19 pandemic will cause “profound structural changes”, the International Monetary Fund (IMF) warned on Thursday.

“The post-pandemic economy will be very different from what was seen previously (…). It makes no sense today to invest in yesterday’s economy,” said IMF Director-General Kristalina Georgieva, in a conversation about the future of the economy.

The severity and magnitude of the impact of the pandemic, which has already caused more than one million deaths and the biggest economic recession in practically a century, has been the center of attention of that organisation’s videoconference meetings, reports the agency EFE.

The pandemic also causes the technical language commonly used in these meetings to be loaded with dramatic phrases.

One of the most used, ‘extraordinary times demand extraordinary solutions’, defends the billion dollar fiscal and monetary stimulus programs that are being implemented in the big economies.

The IMF identified employment as one of the main victims of the pandemic

Against this backdrop, the director of the European Central Bank (ECB), Christine Lagarde, warned that it is essential not only to maintain support but also “to prevent it from being withdrawn suddenly“.


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