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International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Monday that the IMF will make a “small upward revision” to the previous forecast of 4.9% global GDP contraction for 2020, as reported by Reuters.

Additional takeaways

“Global economic picture is less dire than in June forecast as Q2, Q3 output better than expected.”

“IMF continues to see ‘partial and uneven’ recovery in 2021, climb out of recession will be long and uneven.”

Low-income countries face the risk of lost generation due to profound coronavirus shock.”

“Governments have provided around $12 trillion in fiscal resources to ease pandemic, must not withdraw policy support prematurely.”

“IMF total lending commitments now over $280 bln to 81 countries, ‘substantial’ portion of $1 trillion lending capacity still available.”

“Low-income countries need more access to grants, concessional loans, debt relief, some coordinated debt restructurings will be necessary by the public, private creditors.”

Market reaction

The market sentiment seems to have improved modestly following these remarks. As of writing, the S&P 500 futures were up 0.1% on a daily basis.