In its annual report, the International Monetary Fund’s (IMF) experts illustrate the World Economic Outlook in the light of the Covid-19 pandemic.
IMF’s projections show that employment rates are partially rebounded after historically hitting the lowest point, even if they are still well below the pre-pandemic levels.
Concerning the 2020-2021 projection, excluding China, the economy is still in deep recession with a diversion between emerging and developed countries which is also expressed in different recovery periods, furthermore, countries that rely on oil exports and contact services are experimenting a slower recovery than countries with a manufacturing-led economy.
In this context, advanced economies are projected to worsen even after a partial recovery in 2021 and global growth is projected to slow in the medium-term after 2021 (less 3%).
IMF encourages international and global collaborations to maximize the production and the equal distribution of vaccines and proposes ad-hoc intervention plans for emerging and developed countries. In particular, advanced countries should focus more on control-damage in their economy, preventing job disruption and in reallocating resources from growing sectors, like e-commerce, to the sectors that are shrinking; emerging countries, instead, should prioritize critical spending for health.
Listen to the press briefing here.
Source: The International Network for SMEs - INSME
