The director general of the IMF on Monday urged the country to continue to inject money into their economies to fight the crisis caused by the pandemic Covid-19 and not to return prematurely to austerity measures.
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“My message is : spend, spend, spend. Please, spend as much as possible,” said Kristalina Georgieva, during a panel virtual organized jointly by Globsec, the Montaigne Institute and Bruegel, the think tanks in europe. “But keep the receipts. And keep in mind that we can’t get out of it without growth”, she added.
It welcomed the swift reaction of governments with aid totalling some 10,000 billion dollars, ten times more than during the great recession of 2008. The international monetary Fund must publish on the 24th of June its new forecasts for global growth.
Better to spend the public’s money
Its leader had already warned that these forecasts will be worse than expected in April when the Fund forecast a contraction of the gross domestic Product of 3% this year. On Monday, she said that a “majority” of countries will see their gdp growth forecast reviewed downwards, while a “small group” of countries will see their revised estimate on the increase.
“I quite agree that we must be very careful not to remove the support (financial) too quickly”, has also insisted the leader. “Don’t forget that we did after the global financial crisis (2008), and this has been, in a way unintended, negative consequences for some time”, she added. Support efforts are all the more crucial as the crisis caused by the pandemic has increased the inequality.
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“we need to think of ways to better spend public money”, she also recommended calling on them to “use this period (of history) to protect the economy”, to make investments in the economy of the future that will generate growth.
The editorial suggests”The French must quickly spend their money, otherwise they will lose their job,”1 commentairePat152le 15/06/2020 19:20
To desire to spend you must have confidence in the future. Do you have confidence ?
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