Agencies

How COVID-19 will Increase Inequality in Emerging Markets and Developing Economies

By Aminu MusaPosted on November 2, 2020Posted in AgenciesTagged COVID-19, developing economies, Emerging Markets, IMF, Inequality, Low Income Developing CountriesNo Comments

Despite the pre-pandemic gains in poverty reduction and lifespans, many of the EMDEs have struggled to reduce income inequality. At the same time, they saw persistently high shares of inactive youth (i.e., not in employment, education, or training), wide inequality in education, and large gaps remaining in economic opportunities for women. COVID-19 is expected to make inequality even worse than past crises since measures to contain the pandemic have had disproportionate effects on vulnerable workers and women.

COVID’s Impact in Real Time: Finding Balance Amid the Crisis

By Sheriffdeen AdeotiPosted on October 26, 2020Posted in AgenciesTagged Balance, Crisis, Pandemic, Real time, Recession, WEONo Comments

The IMF analyzed the economic effects of lockdowns and voluntary social distancing using two high-frequency proxies for economic activity: mobility data from Google and job openings posted on the website Indeed. As illustrated in the top chart below, over the entire sample of 128 countries used in the analysis, lockdowns and voluntary social distancing contributed equally to the drop in mobility during the first 3 months of a country’s epidemic.

Fiscal Policy for an Unprecedented Crisis

By Joshua OlorunsaiyePosted on October 25, 2020Posted in AgenciesTagged COVID-19, Crisis, Debt, Fiscal Policy, Pandemic, Tax RevenueNo Comments

The COVID-19 crisis has devastated people’s lives, jobs, and businesses. Governments have taken forceful measures to cushion the blow, totaling a staggering $12 trillion globally. These lifelines have saved lives and livelihoods. But they are costly and, together with sharp falls in tax revenues owing to the recession, they have pushed global public debt to an all-time high of close to 100 percent of GDP.

A Bridge to Economic Recovery: Be Aware of Financial Stability Risks

By Joshua OlorunsaiyePosted on October 24, 2020Posted in AgenciesTagged Corporate debt, Debt Financing, Economic recovery, Financial stability, InvestorsNo Comments

Despite a global economic crisis comparable only to the Great Depression, near-term financial stability risks have been contained with the help of unprecedented monetary policy easing and massive fiscal support across the globe. But many economies had pre-existing vulnerabilities—which are now intensifying, representing potential headwinds to the recovery.

Public Investment for the Recovery

By Joshua OlorunsaiyePosted on October 6, 2020Posted in AgenciesTagged employment, Low-income Economies, Post-COVID-19, Public InvestmentNo Comments

Governments around the world are taking extraordinary measures to respond to the COVID-19 crisis. While maintaining the focus on addressing the health emergency and providing lifelines for households and businesses, governments need to prepare economies for the transition to the post-COVID-19 world—including by helping people get back to work.

Reform of the International Debt Architecture is Urgently Needed

By Joshua OlorunsaiyePosted on October 2, 2020Posted in AgenciesTagged Advanced Economies, Debt.Debt ratio, emerging market economies, International, International financial institution, Low Income Developing CountriesNo Comments

The COVID-19 pandemic has pushed debt levels to new heights. Compared to end-2019, average 2021 debt ratios are projected to rise by 20 percent of GDP in advanced economies, 10 percent of GDP in emerging market economies, and about 7 percent in low-income countries.

Monetary Policy for all? Inequality and the Conduct of Monetary Policy

By Joshua OlorunsaiyePosted on October 1, 2020Posted in AgenciesTagged Aggregate Consumption, Central Bank, Economic Theory, Inequality, Inflation, Monetary PolicyNo Comments

nequality in both advanced economies and emerging markets has been on the rise in recent decades. The COVID-19 pandemic has exacerbated and raised awareness of disparities between the rich and poor.

Mission Impossible? Can Fragile States Increase Tax Revenues?

By Joshua OlorunsaiyePosted on September 27, 2020Posted in AgenciesTagged COVID-19, Increase Tax, Revenue, tax, Tax RevenueNo Comments

The COVID-19 shocks are proving to be especially challenging for fragile states. Pre-COVID, fiscal revenues were low in such countries and governments were struggling to raise them. Now, COVID-19 is hitting them hard and fiscal revenues are falling. Once the pandemic abates, restoring and further enhancing tax collection is even more important to secure debt sustainability, facilitate the post-COVID-19 recovery, and meet development financing needs in order to meet the Sustainable Development Goals.

Trade as a Tool for an Efficient Recovery

By Joshua OlorunsaiyePosted on September 18, 2020Posted in AgenciesTagged African Continental Free Trade Area, COVID-19, information and communication technology (ICT) sector, Manufacturing Sector, Sub-Saharan Africa, Trade LiberalizationNo Comments

As economies now look for paths to recovery from the COVID-19 crisis, new evidence reaffirms that policies for more open and trade-integrated economies could significantly benefit domestic competition and ultimately may help lower costs for consumers in emerging and developing economies.

IMF Lending During the Pandemic and Beyond

By Joshua OlorunsaiyePosted on September 18, 2020Posted in AgenciesTagged Financial assistance, IMF, Lending, macroeconomic stabilizationNo Comments

In the face of unprecedented uncertainty and the severe economic impact triggered by COVID-19, the Fund continues to adapt its lending. At the same time, it aims to ensure realistic targets, uphold the credibility of programs, and foster national ownership.
To date, the Fund has provided financial assistance, mainly through emergency lending and precautionary lending tools, to about 80 countries.