IMF Wants Fiscal Stimulus above Global Financial Crisis Level

Politics

Washington, March 16 (Jiji Press)--Major countries should deliver greater fiscal stimulus than during the 2008 global financial crisis to prevent a global slowdown resulting from the coronavirus crisis, the International Monetary Fund said Monday.

The fiscal response of the Group of 20 economies "has been timely but so far remains lower than during the global financial crisis," the IMF said in a statement. "However, as the virus spreads across the globe, more needs to be done in 2020," the institution said.

In the wake of the global financial crisis, triggered by the 2008 collapse of U.S. investment bank Lehman Brothers, the G-20 implemented fiscal stimulus measures amounting to 2 pct of their gross domestic product, or over 900 billion dollars in the current value, in 2009 alone, according to the IMF.

"The case for a coordinated and synchronized global fiscal stimulus to enhance confidence is becoming stronger," the statement said.

In a related statement, Managing Director Kristalina Georgieva said, "Constant contact and close coordination are the best medicine to ensure that the economic pain inflicted by the virus is relatively short-lived."

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