IMF head says 2020 global economic turmoil ‘less dire’ than first feared, but with ‘difficult climb’ to recovery

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The International Monetary Fund will revise its 2020 estimates upward, Managing Director Kristalina Georgieva said Tuesday, as the economic impact of covid-19 has proved to be “less dire” than initially feared.

The IMF had estimated in June that the global economy would shrink by 4.9 percent. The planned revision, which Georgieva described as “small,” does not mean the world will escape the damage caused by the covid-19 pandemic anytime soon.

“My key message is this: The global economy is coming back from the depths of this crisis,” Georgieva said in a speech at the London School of Economics, according to Reuters.

“But this calamity is far from over. All countries are now facing what I would call ‘the long ascent’ — a difficult climb that will be long, uneven and uncertain. And prone to setbacks.”

The IMF head noted that the recovery will be felt differently in different parts of the world. “In low-income countries, the shocks are so profound that we face the risk of a ‘lost generation,’ ” Georgieva said.

The speech came ahead of next week’s IMF and World Bank annual meetings, where the IMF is expected to publish revised estimates for global GDP growth in 2020.

The Washington Post

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