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July 10, 2020 The response to the Coronavirus emergency has been unprecedented in human history. $ 11 trillion has been earmarked by politics worldwide. The response, however, "has also helped to boost global public debt to the highest level in history, at 101.5% of world GDP. Even more than after the Second World War. The International Monetary Fund says in a blog post, however, Gita Gopinath and Victor Gaspar, chief economist and director of the public finance department respectively, believe that governments should be cautious about cutting spending on their economies too early, or there is a risk of doing derail the recovery

Despite the strong response to the emergency, "the need for budgetary action does not end here, because we are not yet out of trouble. Although many countries are coming out of the big lockdown, in the absence of a solution to the health crisis, there are still strong uncertainties on the road. of the recovery, "say IMF chief economist Gita Gopinath and Victor Gaspar, head of the IMF Fiscal Monitor. "The priority is public health, highlighting how fiscal policy must remain flexible until a safe and lasting way out is ensured." According to the IMF, the crisis can lead to a profound transformation. "Many of the jobs destroyed will probably not return. It will be necessary to facilitate the transfer of resources from retreating sectors to growing sectors. It is not possible to predict with certainty what the post-Covid-19 world will be like. Certainly the changes will be profound - Whatever the future, observes the IMF, it requires flexible budgetary policies that facilitate structural changes, address inequalities and support the transition to a greener future. "

Autumn meetings will be virtual
The traditional autumn meetings of the World Bank and the International Monetary Fund will be essentially "virtual", like the ones that the two institutions had already done in the spring due to the Covid-19 pandemic. "As we continue to monitor the situation of Covid-19 in the world and given the health problems associated with the pandemic, the management of the IMF and the World Bank Group recommends that the annual meetings of the IMF and the World Bank 2020 the week of 12 to 18 October, will be in a format mostly virtual "The two Bretton Woods institutions said in a short joint statement. 

The management of the Fund and the Bank will show "flexibility in the format of these meetings in light of the changing situation". "Our goal is to effectively serve our members while preserving the health and safety of annual meeting attendees, employees and the local community in the Washington area," the statement said. The spring meetings of the two institutions had already been organized in virtual format in April, when the United States - after China and Europe - were hit hard by the pandemic and part of the country was confined.