IMF’s Georgieva says lack of reforms is hurting global economy

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The head of the International Monetary Fund (IMF), Kristalina Georgieva in an interview said the lack of improvements is obstructing the already “anaemic” vision of growth. Referring to the coronavirus outbreak, she said such shocks further dim growth prospects.

Further, the Managing Director said, “The monetary policy is shrinking and the reliance on fiscal measures as well as structural reforms to boost growth ought to be stronger.” 

Highlighting the structural lacunae, Georgieva said, ” What’s missing is a more aggressive swing in structural reforms.”

The outbreak of coronavirus has adversely impacted supply chains. This has led to many banks being on alert however these have not announced any monetary easing.

Interestingly, prior to the virus outbreak, the IMF had earlier indicated a slow-paced growth of the world economy in 2020 due to trade rift and tensions in the Middle East.

With the Group of 20 Summit in Riyadh, Saudi Arabia scheduled in next week, the deliberations are to be governed by economic fallout. 

” I am quite optimistic that in very difficult moments we would see the appetite for more coordinated action, ” expressed Georgieva.

Several international banks as HSBC Holdings Plc had to impose cuts on their global growth forecasts. Moreover, the World Bank strongly predict that the lender will need to lower growth numbers because of coronavirus emergency.

However, the IMF’s head lauded China for it’s “very aggressive” measures in tackling the containing the further spread of coronavirus while saying that it is too early to substantiate the economic shock caused due to the outbreak of the virus.

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