The outlook for the world economy is slightly less bleak than the beginning of the summer. Top woman Kristalina Georgieva of the International Monetary Fund (IMF) said this in a speech.
According to her, in the second and third quarters, global economic performance went slightly better than anticipated, allowing for a small upward revision of the forecast for the worldwide economy.
At the end of June, the fund foresaw a 4.9 percent blow to the global economy for this year, followed by a 5.4 percent rebound in 2021.
The IMF will announce exactly how the new estimates will work out next week. Georgieva only lifted a tip of the veil in her speech. She does indicate that the IMF is still assuming a “partial and uneven recovery” for next year.
“For many advanced economies, including the United States and the eurozone, the downturn remains extremely painful but less severe than expected.
China is experiencing a faster-than-expected recovery,” she says. “Others are still in a lot of pain, and some of our revisions have a downside. Emerging markets and low-income countries and fragile states remain in a precarious situation.”
According to the IMF top woman, governments must try to prevent lasting damage from the crisis as much as possible. She warns of “the risk of serious economic scars from job losses, bankruptcies and the disruption of education”.
That is why it is essential, for example, that countries are not too fast with reducing the corona support. There is still a long way to go, says Georgieva. In poorer countries, it is also important not to lose sight of the rising debt.