The IMF says the 2020 recession will not be as severe, but the recovery will be long and uneven

10/06/2020 - 9:30

• Clarín.com

• World

The director of the International Monetary Fund (IMF), Kristalina Georgieva, warned this Tuesday that the global recession in 2020 due to the coronavirus will be less severe than expected, but that the "recovery will be long, uneven and uncertain."

"

. We estimate that the evolution in the second and third quarters was better than expected, which allows a small upward revision of the global forecast for 2020," Georgieva said in a speech prior to the semi-annual meeting of the International Monetary Fund and the World Bank which will begin next week.

On June 24, the IMF published a very gloomy update of its forecasts, estimating

compared to a projection of a 3% drop in world GDP in April.

The head of the IMF did not advance figures before the publication next week of the report of the World Economic Outlook (WEO for its acronym in English).

However, Georgieva warned that the road to recovery will be

and said the improvement in the economy will be

."

The directive noted that state support was key to "putting a floor" under the global economy, with about 12 trillion dollars in aid for homes and businesses.

The head of the IMF also indicated that there will be "job losses, bankruptcies and interruptions in education."

Photo EFE

"In the United States and Europe, the recession - despite being painful - was not as pronounced as economists feared," added the IMF chief, who also highlighted a "faster than expected recovery" in China.

"In low-income countries, the blow is so deep that there is a risk of a 'lost generation'," warned Georgieva, the second woman to lead the Fund, after her predecessor Christine Lagarde.

The head of the IMF also indicated that there is a risk that the crisis will leave important scars such as

.

The IMF assures that the losses will be inevitable as a result of the coronavirus pandemic.

AFP photo

For Latin America and the Caribbean, in June the IMF forecast a GDP contraction of 9.4% in 2020 and the few updates show a mixed scenario.

On Monday, the Fund substantially improved its forecast for Brazil this year from a 9.1% contraction anticipated in June to a 5.8% drop in GDP.

In her speech, Georgieva indicated that in places where the pandemic persists "it is critical to maintain life preservers" for the economy, companies and workers.

"If the life jackets are cut too soon, the long climb turns into a precipitous fall," he said.

With information from AFP.

JPE

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