The IMF conducted a global bank stress test that covered 30 countries. It found that even in adverse scenarios banks in the aggregate globally seem to be well-capitalised.
Vitor Gaspar, Director of the IMF's Fiscal Affairs Department said that the government revenue declined everywhere, public debt jumped up to 98 per cent compared with 84 per cent before COVID-19.
The IMF projection reflects a faster than expected recovery in mobility, a rapid decline in active COVID-19 cases, and recovery in various high-frequency economic indicators in recent months
Local restrictions, rapid testing, rapid tracing and seeing these measures through until the end, until localised outbreaks subside may help in dealing with the pandemic strongly.
Recovery may be sluggish, but growth will likely pick up to 6.9 per cent in 2021 — 0.3 per cent higher than its earlier estimates.
A finance ministry statement said that one of the key outcomes of the G20 Action Plan has been the Debt Service Suspension Initiative.
India's per capita GDP is expected to decline by 10.5 per cent to USD 1,877 in 2020 while Bangladesh's per capita GDP is expected to rise by 4 per cent to USD 1,888.
In its Global Financial Stability Report Update, IMF said financial conditions have eased but insolvencies loom large.
According to IMF, China's growth is projected to decline from 6.1 per cent in 2019 to 1.2 per cent 2020 and Asia's key trading partners are expected to contract sharply.
She said poor countries and poor people in rich countries have benefited from the surge in global trade over the past decade, but acknowledged that some regions and industries have suffered.
International Monetary Fund Managing Director Christine Lagarde's comments followed Trump's announcement of 25 percent U.S. import tariffs on steel and 10 percent on aluminium.