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IMF warns against premature withdrawal of stimulus amid Covid resurgence

The IMF noted progress on a vaccine, but also said elevated asset prices point to a disconnect from the real economy and a potential threat to financial stability

IMF
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Georgieva said some economies have room for greater fiscal support next year beyond current budgets, and warned against cutting off lifelines such as expanded unemployment benefits.

Eric Martin, Fergal O'Brien & Alberto Nardelli | Bloomberg
Leaders of the global economy are warning that the recovery from this year’s recession is at risk and could be derailed as the resurgence of Covid-19 forces fresh restrictions on households and companies.

Both the International Monetary Fund and the Group of 20 — which comprises the world’s richest nations — sounded the alert as leaders of the G-20 prepare for a virtual summit this weekend, hosted by Saudi Arabia. The IMF noted progress on a vaccine, but also said elevated asset prices point to a disconnect from the real economy and a potential threat to financial stability.

“While global economic activity

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First Published: Nov 20 2020 | 12:37 AM IST

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