Washington – The International Monetary Fund (IMF) has warned that economic growth will continue to be unbalanced in the wake of the Corona outbreak, leading to increased poverty, discontent and geopolitical tensions. The IMF report warned that although the economy is expected to grow by the end of 2021. However, it will slow down again next year.
Gita Gopinath, the chief economist at the IMF, released the ‘World Economic Outlook Report’ on Tuesday. The report is titled ‘Fault Lines Widen in the Global Recovery’. The report notes that the global situation has changed dramatically since the IMF released its report in April. Economist Gita Gopinath pointed out that the availability of vaccines has emerged as a major factor and has become a dividing line in the global economy.
The process of rejuvenating the global economy is divided by a line called ‘vaccination’. Almost all the world’s advanced economies are taking steps to restore day-to-day transactions by the end of the year. This mainly includes emerging economies and developing economies. At the same time, on the other hand, the spread of Coronavirus and the number of victims is increasing in many countries. As long as the pandemic spread is high in other countries, the economy is unlikely to recover even in countries with low spreads, the IMF report said.
Economists at the IMF have made it clear that the global economy will not recover unless the Coronavirus pandemic ends internationally. Earlier this year, several countries had taken steps to boost the economy by lifting restrictions after starting vaccination. However, with the introduction of new types of Coronavirus, the systems collapsed again, the IMF noted.
Also, the consequences are now coming to the fore, the IMF said in its report. Emerging and developing economies have lagged in this regard. But at the same time, advanced economies have taken rapid steps to get the economy back on track, with vaccination and hints of large-scale funding. In developed economies, about 40% of the population has been vaccinated. In emerging economies, the figure is hardly 11%, the IMF said.
The rapid spreading of deadly ‘strains’ of Coronavirus could be a major obstacle to the recovery of the global economy. The IMF economists warned that if the recovery process is to be smooth, all economies must come together and develop standard policies and measures. Otherwise, the balance of the economy will be disturbed and poverty, social discontent and geopolitical tensions will intensify. These hurdles will hit the global economy by $4.5 trillion by 2025, economist Gita Gopinath warned.