IMF: "Early Withdrawal of Fiscal Plug Will Cause Severe Damage"

Georgieva, IMF Managing Director, Urges Continued COVID Fiscal Support
"Public Investment Can Create Millions of Jobs"

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), urged governments around the world on the 14th (local time) not to stop fiscal spending in response to the novel coronavirus disease (COVID-19).

At a press conference during the annual meetings of the IMF and the World Bank, Managing Director Georgieva said, "There is a risk of causing serious damage if the plug is pulled too early."

She emphasized, "Sustained economic recovery is only possible if the pandemic is suppressed everywhere," adding, "It is essential to strengthen necessary health measures and increase fiscal and monetary support for households and businesses."

She pointed out, "To secure economic and fiscal stability, lifelines such as credit guarantees and wage subsidies will be extremely important for a certain period."

To overcome the recession, she proposed that "public investment in green projects and digital infrastructure could be a game changer." Through this, she explained, "millions of new jobs will be created, and productivity and income will be enhanced."

Managing Director Georgieva forecasted, "Strong international cooperation is especially needed for vaccine development and distribution," and added, "Faster progress in medical solutions can accelerate recovery and add $9 trillion to global income by 2025."

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