Daily Management Review

IMF: COVID-19 pandemic will nullify economic growth for some EU countries


The coronavirus pandemic will nullify three years of economic progress for a number of European countries, IMF chief Kristalina Georgieva said on Monday.

“For the countries of Central, Eastern and Southeastern Europe, the pandemic will negate three years of economic progress, and it will be a severe blow to the region, which made outstanding economic progress before the crisis,” she said, speaking at the Atlantic Council online event.

At the same time, Georgieva acknowledged that the data for the second quarter were slightly better than the June forecasts.

"But we have not yet got out of the forest. The pandemic is still with us, and a number of countries are hitting a second wave. There is considerable uncertainty about the path to recovery. The outlook for emerging markets and emerging economies other than China remains unpredictable," Georgieva added.

Carefully targeted infrastructure investments are a priority, she said. In the short term, this will create jobs; in the long term, it will improve the interconnectedness of economies and increase their productivity.

source: reuters.com