Global finance leaders said the world economy had escaped a coronavirus-triggered collapse so far, but warned that failure to conquer the pandemic, maintain stimulus and tackle mounting debt among poor nations could crush a fragile recovery.
The head of the International Monetary Fund said the lack of deeper improvements in the global economic system is hindering what’s already an “anemic” outlook for growth, especially as the shock caused by the coronavirus further dims prospects for a pickup this year.
In the decade since the financial crisis, central bankers around the world have taken on the mantle of reinvigorating the global economy. By keeping interest rates low and buying up trillions of dollars' worth of government bonds and other assets, these institutions helped to prop up growth at a time when the world desperately needed it.
The window of opportunity for safeguarding global growth is "narrowing" as trade disputes deepen and emerging markets face fiscal crisis, the IMF said Saturday, warning countries against worsening things by weaponizing currency and interest-rate policies.