The COVID-19 pandemic is
having a “severe” effect on the world economy and is expected to cause a
-3% change (i.e., a contraction) in global output in 2020, “much worse”
than the 2008-09 financial crises, as per the International Monetary
Fund’s (IMF) World Economic Outlook (WEO).
India’s growth is expected to
dip to 1.9% in 2020 and rebound to 7.4% in 2021, as per the WEO, which was
released by the Fund on 14th April 2020.
Assumptions made were that
the pandemic fades in the second half of this year, with containment
efforts gradually easing up.
Monetary Fund (IMF)
The International Monetary
Fund (IMF) is an international organization headquartered in Washington,
It consists of 189 countries
working to foster global monetary cooperation, secure financial stability,
facilitate international trade, promote high employment and sustainable
economic growth, and reduce poverty around the world.
It periodically depends on
the World Bank for its resources.
Through the fund and other
activities such as the gathering of statistics and analysis, surveillance
of its members’ economies, and the demand for particular policies, the IMF
works to improve the economies of its member countries.
of the IMF
To provide financial
assistance to member countries with balance of payments problems, the IMF
lends money to replenish international reserves, stabilize currencies and
strengthen conditions for economic growth. Countries must embark on
structural adjustment policies monitored by the IMF.
It oversees the international
monetary system and monitors the economic and financial policies of its
189 member countries. As part of this process, which takes place both at
the global level and in individual countries, the IMF highlights possible
risks to stability and advises on needed policy adjustments.
It provides technical
assistance and training to central banks, finance ministries, tax
authorities, and other economic institutions. This helps countries raise
public revenues, modernize banking systems, develop strong legal
frameworks, improve governance, and enhance the reporting of macroeconomic
and financial data. It also helps countries to make progress towards the
Sustainable Development Goals (SDGs).