On 10 September, the International Monetary Fund (IMF) said additional stimulus was needed, adding investments in health, food and sources of income for vulnerable households and businesses. due to the COVID-19 pandemic.
Gerry Rice, director of the IMF’s communications department, told reporters at an online convention that the Washington-based global economic system supports the Indian government’s responses to the coronavirus pandemic, adding a fiscal stimulus with one on low-income staff and households. supports economic easing and regulatory and liquidity measures that have taken a position in the economic sector and borrowers.
“We believe that additional fiscal stimulus is warranted, namely health, food, and income stream support expenses for vulnerable households and business aid,” Rice said, answering questions about the large contraction of the Indian economy in the last quarter due to coronavirus. .
In the short term, a detailed, well-communicated and credible medium-term fiscal consolidation plan is also important, along with a consolidation of fiscal transparency, the IMF spokesman said.
COVID-19 vaccine
Frequently Asked Questions
“We hope this will build confidence in the market, reducing the burden on loans and the economy as a whole,” he said.
Noting that the coronavirus pandemic in India has an effect on progression and poverty, Rice said that given the unprecedented impact, the immediate priority will have to be a coordinated political reaction to combat the virus.
After the United States, India has the highest number of other people inflamed with coronavirus with more than 4. 2 million positive cases. The United States has the highest number with 6. 4 million cases and 193,250 deaths. More than 70,000 Indians died as a result of the disease. coronavirus, as it had an unprecedented effect on the Indian economy.
India’s initial GDP estimate for 2020 was weaker than expected, at around 23% year-on-year, reflecting the severe effect of the pandemic and upcoming locks.
Contraction and economic activity are the general weaknesses of industries and services, with the construction, manufacturing, hospitality and transport sectors being the hardest hit,” Rice said.
In its most recent update to the World Economic Outlook, the IMF projected India’s expansion by minus 4. 5% and 6% for the 2020-21 and 2021-22 fiscal years respectively, he said.
The prospects for short-term expansion remain tarnished by the national and global slowdown and pandemic uncertainties with risks of problems.
Of course, this is true, only for India still for top countries, he said, adding that the IMF would review India’s expansion projections in the upcoming World Economic Outlook on the sidelines of the IMF’s annual meeting in October.
Market Podcast Uncompromising on ESG rating!Saibal Ghosh selects those five sectors