The Director of the International Monetary Fund, Kristalina Georgieva, has warned that the countries of the world may face massive bankruptcies and permanent economic damage if they prematurely stop the monetary and financial support provided at the present time to help their economies during the current crisis.
"We are very clear in the message we are sending, which is not to withdraw support prematurely," she said. "If we do so, we may face massive bankruptcies and massive unemployment."
She pointed out that "the global economy appears to be less corrupt than it was in June, and from this standpoint the Fund will adjust its forecast for global production in 2020 with a slight increase," noting that "the global economy is rising again from the depths of this crisis."
Kristalina Georgieva emphasized that "this disaster is not yet nearing its end, as all countries are now facing what I will call" the long rise, "which is a difficult climb that will take a long time and will be intermittent, foggy and prone to pitfalls."
The IMF had predicted in June that the lockdown measures caused by the Coronavirus would shrink global GDP by 4.9 percent, the largest contraction since the Great Depression of the 1930s, and called on governments and central banks for more support through policies. The fund is due to publish its revised forecast next week.
Source (Al-Arabiya.net, Edited)