The International Monetary Fund (IMF) has asked European governments to continue spending as they have been doing during these months of pandemic, despite the hole in their public accounts. In addition, the organism has praised in its last report the success of the approved fiscal aid.
It thus recognizes the effort that all governments have made to try to alleviate the economic effects of the Covid-19 pandemic, but it requires a further effort. They have spent a lot, but "they can't afford to stop"This is not the time to abandon its expansionary policies, said the new head of the European department of the organization, Alfred Kammer.
Regarding the aid, the IMF considers that they have been programs that "have been very successful in limiting the destruction of jobs and have avoided a cascade of bankruptcies and bank closures”.
On the other hand, the IMF has drastically cut its growth projection this year for the Asian economy, reflecting a more pronounced contraction than expected in countries like India. While he improved next year's growth forecast for the region, he warned that the recovery will be slow and uneven and that countries that depend on tourism will be hit particularly hard.
"Fear of infection and social distancing measures are weakening consumer confidence and they will keep economic activity below capacity until a vaccine is developed. "" Although China's recovery may boost regional trade, weak global growth, closed borders and tensions around trade, technology and security have worsened prospects for a recovery driven by trade in the region, "he explained.
The IMF said it expects the Asian economy to contract by 2.2% this year and expects it to grow 6.9% in 2021.
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