IMF-World Bank Spring Meeting draws to a close
Today marks the conclusion of the virtual 2020 Spring Meetings between the International Monetary Fund (IMF) and the World Bank.
The meetings, which included briefings on global and regional economic outlooks in the context of the COVID-19 crisis, began on Tuesday.
As expected, the short and medium-term economic impacts of COVID-19 received significant attention, with the IMF highlighting a projected fall in global growth in 2020 by 3% and a cumulative loss to global GDP of $9 trillion. The current crisis was said to mark the first time since the Great Depression in which emerging and developing countries alike are in recession.
The IMF, which has pledged $1 trillion in emergency financing and debt relief to vulnerable countries, expressed support for national fiscal and monetary stimulus programs and emphasised the necessity for international collaboration in debt relief.
Already this week, the foundation introduced a short-term liquidity line for developed countries and is working to extend its debt relief trust for low-income countries to $1.4 billion. However, as sudden stops in capital inflows place increasing pressure on capital banks of many vulnerable countries—especially in South America and sub-Saharan Africa—the IMF will likely be pushed to take more drastic action to combat liquidity shortages.
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