A recent report by the International Monetary Fund (IMF) stated that the world economy lost $15 trillion in output as a result of the pandemic as the banks have provided more liquidity in the past year compared to what they did in a decade combined, according to media reports. The organisation also warned that it would take years to recover from the Covid-19 crisis if reforms are not implemented.
Geoffrey Okamoto, first deputy managing director of IMF released a statement saying, “Since March 2020, governments have spent $16 trillion providing fiscal support amid the pandemic, and global central banks have increased their balance sheets by a combined $7.5 trillion.
“This was necessary — IMF research indicates that if policymakers had not acted, last year’s recession, which was the worst peacetime recession since the Great Depression, would have been three times worse.”
He also stated that the same enthusiasm that has been put in vaccination programmes and plans for recovery spending also needs to be put into growth measures to make up for the losses incurred. He also called for strict reforms that will serve as a means for a better and sustainable future.
We must encourage people to rebuild a brighter future which will be a primary challenge for the present generation of policymakers. The IMF chief mentioned that they should take this opportunity as a challenge and try being bold as the current crisis reaches a crossroads.
Going forward, the IMF advised that policymakers should implement a fundamental shift to save their economies from collapsing for future reforms.