As the hopes of the vaccine are fueling the market and economies bouncing back, the global economy is stabilizing in recent days. Businesses are opening up with restrictions, people are working and the situation seems going back to normal. The surge of cases is a constant problem and the world bodies are doing their utmost to curb the infection.
Despite the signs of recovery, the IMF chief’s Kristalina Georgieva said that the global economy continues to face challenges. She also cited the possibility of a second wave of Covid-19 and that governments should keep their support programs in place. Ahead of IMF’s weekend meeting in Saudi Arabia, she said, “Activity has started to gradually strength, but we’re not out of the woods yet,” in a message to G20 finance ministers.
The 11 trillion USD in stimulus package provided by the G20 nations has helped to prevent a worse outcome but the continued efforts will be required from all governments in the coming days.
A Washington-based crisis lender has downgraded its growth forecast and is now expecting global GDP to fall by 4.9 percent due to the lockdowns. Although the deeper contraction has led to changes in the forecast, a warm recovery is expected for the next year.