IMF Doubts Global recovery

The International Monetary Fund's chief economist Geeta Gopinath said in a new blog that the International Monetary Fund is deeply suspicious of the global recovery as it is likely to expect a worse contraction in the global economy than expected for 2020.

Gopinath added that the economic crisis that resulted from the coronavirus pandemic was more global than previous crises, and also indicated a great variation in the financial markets from the real economy, which portends possible sharp fluctuations and corrections in financial markets.

Gopinath pointed out that there are signs of early recovery in many countries that have reopened their economies, and said that while fiscal policy measures have been significant in developed economies, poor countries have more restrictive resources.