The recovery of the world economy after the shock caused by the Covid-19 epidemic will be much longer than expected, worries Kristalina Georgieva, managing director of the International Monetary Fund (IMF). The Fund is preparing to revise downwards for 2020 its forecast for a contraction of 3% of world GDP. For 2021, he is also pessimistic: the recovery will be partial, it should not reach the + 5.8% forecast so far, explained the boss of the Fund, which will publish her new forecasts in June.
Read also: The global economy under the shock of the coronavirus
In April, the organization that watches over the stability of the world economy predicted that the business closings and containment measures decided to slow the spread of the virus would plunge the world into the worst recession since the Great Depression of the 1930s. Since then, "bad news" has accumulated. Monday, the director of the IMF insisted again on the data, worse than expected, collected all over the world. "Obviously, it will take us much longer to fully recover from this crisis," says the Bulgarian.
Speaking of tensions that have escalated again in recent weeks between the United States and China, the IMF boss urges the two largest economies to continue the dialogue and maintain trade. "We must not turn away from what has worked for people all over the world: the division of labor, collaboration and trade, which help lower the costs of goods and services, increase incomes and reduce poverty within and between countries, ”she insists…