SOURCE – economic times
GS PAPER- 3
CONTEXT – The International Monetary Fund has recently launched the World Economic Outlook 2020
- According to the report, in 2021, growth is projected to rebound to 5.2 per cent, -0.2 percentage points below its June projection.
- The report has projected that India’s economy will contract by 10.3 percentage in 2020. This growth will be the slowest among the BRICS countries.
- Greater international collaboration is needed to end this health crisis. Second, to the extent possible, policies must aggressively focus on limiting persistent economic damage from this crisis.
- The recovery strengthens, policies should shift to facilitating the reallocation of workers from sectors likely to shrink on a long-term basis (travel) to growing sectors (e-commerce).
- Emerging market and developing economies are having to manage this crisis with fewer resources, as many are constrained by elevated debt and higher borrowing costs
- The global easing of monetary policy while essential for the recovery should be complemented with measures to prevent the build-up of financial risks over the medium term, and central bank independence should be safeguarded at all costs