US, China must continue coronavirus stimulus to help recovery from ‘crisis like no other’, IMF’s Georgieva says

Name: China must rely on its ‘internal market for innovation’, says sociology Prof Lau Siu Kai
Uploaded: 2020-10-16T04:19:43.000Z
Duration: 5 min 27 s
Description: China must rely on its ‘internal market for innovation’, says sociology Prof Lau Siu Kai

IMF managing director Kristalina Georgieva says the US and China must continue to strong stimulus to help the world recover from the coronavirus

International cooperation on Covid-19 vaccines could speed up the world economic recovery and add US$9 trillion to global income by 2025

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International Monetary Fund (IMF) managing director Kristalina Georgieva says the US and China must continue with strong fiscal and monetary stimulus to help recovery from he coronavirus. Photo: AFP

ReutersandAssociated Press

Published: 12:19pm, 16 Oct 2020Updated: 3:54pm, 16 Oct 2020

The United States and China needed to keep up strong stimulus to help speed the global economy’s recovery from the novel coronavirus pandemic, International Monetary Fund (IMF) managing director Kristalina Georgieva said on Thursday.

A faster recovery also depends on strong cooperation to develop and distribute Covid-19 vaccines evenly worldwide, but could add nearly US$9 trillion to global income by 2025, Georgieva told a news conference after an IMF steering committee meeting.

“This is a crisis like no other,” she said at a closing news conference. “It calls for steps to enable a recovery like no other.”

Georgieva said the US has the fiscal space and monetary policy capacity to pump out more economic stimulus. US spending so far during the pandemic has had a very positive impact on the rest of the world and its influence “cannot be overstated,” she said.

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China must rely on its ‘internal market for innovation’, says sociology Prof Lau Siu Kai

Washington has pumped out around US$3 trillion so far, leveraged by US Federal Reserve lending and guarantee facilities, but negotiations on another round of stimulus between the Trump administration and Democrats in Congress have stalled and look unlikely to produce an agreement before the November 3 elections.

US President Donald Trump on Thursday offered Democrats to raise his latest offer to $1.8 trillion, but Republican Senate majority leader Mitch McConnell favours a far smaller $500 billion figure.

Georgieva said it was up to US authorities to decide the “exact sequencing” of any further stimulus, “but it has been an important positive impulse and we would like to see how it would be continued again.”