Economics
IMF Joins Powell and Lagarde Urging Governments to Keep Spending
- Central bankers keep up push for fiscal stimulus at IMF summit
- Debt concerns rise but Fund says it’s too early to cut support
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The International Monetary Fund said more public spending will be needed to complete the economic recovery from coronavirus, joining central bankers and finance leaders who are urging governments to set aside fears about mounting debt for now.
The Fund, historically a champion of budget restraint, on Wednesday published its most detailed study of the pandemic’s impact on public finances. It said global government debt will “make an unprecedented jump” this year, but it’s “not the most immediate risk. The near-term priority, instead, is to avoid premature withdrawal of support.”