International Monetary Fund head has said that the lack of deeper improvements in the economic system of the world has been hindering what has already been an anemic outlook of growth for the world particularly as coronavirus shock has further made the prospects of a pickup in the year be lower. The monetary space has been shrinking and the reliance on the fiscal measures along with the structural reforms for boosting growth is getting stronger as per the managing director of IMF. She says that what the world has been missing is a lot more aggressive swing in the structured reforms
With the impact of this virus raising threats of disruptions all over the supply chains, a lot of the central banks have been on high alert however they have not yet indicated that they are going to plan a monetary easing. Even prior to the scale of this outbreak becoming clear, the IMF had predicted that the world economy is going to strengthen at a weaker pace in the year 2020 than had been anticipated previously as there was a threat of coronavirus and the geopolitical situation around Middle East.
This fallout has been expected to dominate the discussions at the meeting in this week of the finance ministers and the central bankers in the capital of Saudi Arabia, Riyadh. It has been reiterated by IMF that they are hoping for a global response which is synchronized to the risks which world economy has been facing.
They have said that they are going to back themselves and remain optimistic in the face of adversity by coordinated action and come up with the means to solve this problem.