Fiscal Monitor, October 2020: Policies for the Recovery

October 14, 2020

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Fiscal Monitor, October 2020: Policies for the Recovery, (USA: International Monetary Fund, 2020) accessed November 21, 2024

Summary

Chapter 1 of the report draws some early lessons from governments’ fiscal responses to the pandemic and provides a roadmap for the recovery. Governments’ measures to cushion the blow from the pandemic total a staggering $12 trillion globally. These lifelines and the worldwide recession have pushed global public debt to an all-time high. But governments should not withdraw lifelines too rapidly. Government support should shift gradually from protecting old jobs to getting people back to work and helping viable but still-vulnerable firms safely reopen. The fiscal measures for the recovery are an opportunity to make the economy more inclusive and greener. Chapter 2 of this report argues that governments need to scale up public investment to ensure successful reopening, boost growth, and prepare economies for the future. Low interest rates make borrowing to invest desirable. Countries that cannot access finance will, however, need to do more with less. The chapter explains how investment can be scaled up while preserving quality. Increasing public investment by 1 percent of GDP in advanced and emerging economies could create 7 million jobs directly, and more than 20 million jobs indirectly. Investments in healthcare, housing, digitalization, and the environment would lay the foundations for a more resilient and inclusive economy.

Subject: COVID-19, Economic and financial statistics, Emerging and frontier financial markets, Expenditure, Financial markets, Fiscal policy, Fiscal stance, Government finance statistics, Health, Public debt, Public investment spending

Keywords: Africa, Asia and Pacific, Caribbean, Cash flow, Country abbreviation, COVID-19, Emerging and frontier financial markets, Extent investment, Financing constraint, FMstatistics manual, Global, Government finance statistics, High-quality investment, IMF executive board discussion, Investment efficiency, Investment plan, Investment project, Investment quality, Investment scaling-up, Investment spending, Job impact, Management institution, Management practice, Middle East, Net investment rate, North Africa, Potential GDP, Project development, Public investment, Public investment spending, Statistics manual, Sub-Saharan Africa

Publication Details

Pages:

124
Volume:

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DOI:

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Issue:

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Series:

Fiscal Monitor No. 2020/002
Stock No:

FMOEA2020002
ISBN:

9781513552705
ISSN:

2219-276X

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