According to Georgieva, in the second and third quarters the global economic situation went slightly better than expected, which now allows for a small upward revision of the forecast for the world economy.
At the end of June, the IMF foresaw a 4.9 percent blow to the world economy for 2020, followed by a 5.4 percent rebound in 2021. The Dutch economy is expected to contract by no less than 7.7 percent this year.
The IMF will announce next week exactly how the new estimates will turn out.
“For many advanced economies, including the United States and the eurozone, the downturn remains extremely painful, but less severe than expected,” she said. “China is experiencing a faster-than-expected recovery. Other countries are still in great pain from the crisis, and some of our revisions have a downside. Emerging and low-income countries are still in a precarious situation.”
12 trillion euros in aid
The top woman emphasizes that the corona support from governments all over the world has helped. The interventions by central banks also had a positive effect. According to her, around 12 trillion euros in aid has been provided to households and businesses worldwide.
According to Georgieva, it is important that governments try to prevent permanent damage from the crisis as much as possible. She warns of “the risk of serious economic scars from job losses, bankruptcies and the disruption of education.”
That is why it is important, for example, that countries are not too quick to reduce the corona support. There is still a long way to go, says Georgieva. In poorer countries, it is also important not to lose sight of the rising debt.