Forget Debt, Save the Economy! - IMF

 The International Monetary Fund (IMF) calls on governments to step up their efforts to combat the coronavirus pandemic and the global economic downturn even as public debt reaches its highest level.

The health crisis caused by Covid-19 has triggered the release of a global fiscal stimulus of up to about $ 12 trillion following the government's response to save the country's economy.

The IMF predicts global government debt will increase by almost 100% of Gross Domestic Product (GDP) this year, driven by rising deficits and deepening economic contraction.

Global economic output is expected to decline by 4.4% this year and over the next five years, the crisis could result in production losses of up to $ 28 trillion.

However, the achievement of high debt levels should not stop further support from the government.

IMF Managing Director Kristalina Georgieva says it is important for all countries to continue taking steps to protect lives and livelihoods.