19:14 12 July 2020
IMF on global public debt: It wasn't so bad even after World War II
The IMF predicts that the global economy will shrink by 4.9 percent compared to 3 percent projected in April.
In connection with the coronavirus pandemic, the International Monetary Fund predicts that global public debt will reach its highest level of 101% in history this year. GDP. It is expected to be higher even than debt after World War II - says the IMF.
IMF chief economist Gita Gopinath and Vitor Gaspar, director of the public finance department of the Fund, however, say that despite record public debt, governments should definitely beware of too soon giving up support programs to support the economy, as this may threaten to block its recovery.
"Clamping the budget too early is a risk even greater than derailing the economic recovery (because of) future, even higher budget costs," wrote Gopinath and Gaspar in a joint note.
