IMF’s Georgieva urges more coronavirus stimulus from U.S., China

In this news, we discuss the IMF’s Georgieva urges more coronavirus stimulus from U.S., China.

WASHINGTON (Reuters) – The United States and China must maintain strong momentum to help accelerate the recovery of the global economy after the novel coronavirus pandemic, International Monetary Fund Managing Director Kristalina Georgieva said Thursday.

A faster recovery also depends on strong cooperation to develop and distribute COVID-19 vaccines evenly around the world, but could add nearly $ 9 trillion to global revenue by 2025, Georgieva said in a statement. press conference after a meeting of the IMF steering committee.

Georgieva said the United States has the fiscal space and monetary policy capacity to pump more economic stimulus. US spending so far during the pandemic has had a very positive impact on the rest of the world and its influence “cannot be overstated,” she said.

Washington has pumped out around $ 3 trillion so far, thanks to Federal Reserve loans and guarantee facilities, but negotiations on another round of stimulus between the Trump administration and Democrats in Congress have stalled and seem unlikely to produce a deal before the November 3 election.

President Donald Trump on Thursday offered to raise his last $ 1.8 trillion from Democrats, but Republican Senate Majority Leader Mitch McConnell is in favor of a much smaller figure of $ 500 billion.

Georgieva said it was up to US authorities to decide on the “exact sequencing” of any other stimuli, “but it has been a big positive boost and we would like to see how it continues again.”

She later told a CNBC panel that she had “no doubts” the United States would roll out more fiscal stimulus, and said it “would have a positive impact every time it happened. “.

“Of course, we want the lifelines for businesses and workers to be maintained. This is our main message – don’t cut these lifelines prematurely, ”Georgieva said at the press conference.

She said China, the world’s second-largest economy, has also provided a “powerful stimulus” to the global economy, thanks to fiscal spending, monetary policy and a strong recovery that has created demand for the countries that supply it. raw materials and components of the supply chain.

China’s participation in international efforts to develop and widely distribute vaccines would build confidence that the pandemic can be wiped out more quickly, Georgieva said.

“As long as we do not have a lasting exit from the health crisis everywhere, the recovery will remain uneven and uncertain,” she said.

Reporting by David Lawder and Rodrigo Campos; edited by Grant McCool

Original © Thomson Reuters

Originally posted 2020-10-15 15:36:10.

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