Editorial
October is perhaps one of the most significant months in terms of the world’s financial policy and performance reporting. The 2020 Annual Meetings of the IMF and World Bank began Monday 12th October, held virtually due to COVID-19. The meetings are being held at a time when the economy of just about every country is reeling under the global health crisis. After the 2008 crisis, the Obama administration patiently and effectively restored the US economy, but the Trump presidency soon undid all that had been accomplished. China is now the world’s largest exporter, exporting $2.5 trillion (16.2%) of world total exports in 2018, and by purchasing power parity its economy now surpasses the US.
IMF Managing Director Kristalina Georgieva said: “The global economy is coming back from the depths of this crisis … But this calamity is far from over. All countries are now facing what I would call ‘the long ascent’ — a difficult climb that will be long, uneven, and uncertain. Growth is expected to fall to minus 4.4 percent this year, and over the next five years, the crisis could cost an estimated $28 trillion in output losses.”