Advanced economies Current Affairs - 2020
The International Monetary Fund in its World Economic Outlook has suggested various policy measures to arrest the downward growth trend. They are:
- Resolving cooperatively and quickly the trade disagreements which may derail the global trade and addressing the resulting policy uncertainty, rather than further creating harmful barriers and destabilizing an already slowing global economy.
- Accomplishing the call of G20 leaders to reform the World Trade Organization.
- Adjusting the fiscal space where it is low in a growth-friendly manner to ensure public debt is on a sustainable path, while protecting the most vulnerable.
- The monetary policies of advanced economies should continue to normalize carefully by taking necessary steps to address the slowing growth momentum.
- The IMF also advocates for measures to boost potential output growth and enhance inclusiveness across all economies to broaden the growth.
The World Economic Outlook notes that policy space for countries is more limited than in 2008. As a result, multilateral cooperation will be even more important in the event of a sharper decline in global growth. The IMF notes that it is here the multilateral institutions must be equipped with adequate resources to deal with the rising risks.