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The International Monetary Fund warned that if reforms are not implemented, it will take years for most countries to recover from the new crown virus crisis.
A senior official of the International Monetary Fund (IMF) stated that due to Covid-19, the output of the world economy has lost 15 trillion U.S. dollars (55 trillion dirhams) because of the ratio of liquidity provided by central banks in the past year. The sum of the past 10 years is even more. Say.
“Since March 2020, governments have spent US$16 trillion (Dh58.72 trillion) in financial support during the pandemic, and the balance sheets of global central banks have increased by US$7.5 trillion (Dh27.5 trillion). Ram). This is absolutely necessary-research by the International Monetary Fund shows that if policymakers did not take action, last year’s economic recession was the worst recession in peace since the Great Depression, and it would be three times worse.” Said Jeffrey Okamoto, the first vice president of the International Monetary Fund.
Okamoto emphasized that the energy invested in the vaccination and recovery expenditure plan also needs to be invested in growth measures to make up for this lost output.
The first vice-president of the International Monetary Fund called for difficult reforms, which will serve as a springboard to a brighter and more sustainable future, rather than a crutch in response to the pre-Covid-19 economic weakness.
“Seizing the opportunity can achieve the steady growth and the improvement of living standards for many years after Covid-19. The International Monetary Fund estimates that in the next ten years, comprehensive growth-promoting reforms across product, labor, and financial markets can enable emerging markets and developing countries. The economy’s per capita GDP growth rate increased by more than 1 percentage point per year. Compared with before the pandemic, these countries will be able to double the rate of convergence to advanced economies’ living standards,” Okamoto said.
The International Monetary Fund warned that if reforms are not implemented, it will take years for most countries to recover from the new crown virus crisis.
“Inspiring the next generation to rebuild a brighter future is the main challenge facing this generation of policymakers. They should seize this challenge and be bold when the current crisis comes to a crossroads. Combining growth reforms with recovery spending will achieve us The prosperity promised to citizens creates our own destiny in the post-Covid-19 world,” Okamoto said.
Looking to the future, the International Monetary Fund recommends that policymakers need to devise a fundamental shift from rescuing economic collapse to strengthening the economy for the future through growth-oriented reforms.
— Waheedabbas@khaleejtimes.com
Wahid Abbas
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