NEW YORK, United States — Debt accumulated by businesses and individuals
worldwide could slow economic recoveries from the pandemic crisis, the IMF
warned Monday.
اضافة اعلان
Governments took
exceptional measures to support their economies as COVID-19 spread two years
ago, including rolling out debt repayment suspensions or offering large-scale
loans.
But these programs
resulted in higher debt levels for some sectors, including those most disrupted
by the virus, like tourism and restaurants, as well as low income households,
the Washington-based crisis lender said.
In a chapter of
its World Economic Outlook, the IMF said the debt burden could hold growth back
in developed countries by 0.9 percent and in emerging markets by 1.3 percent
over the next three years.
“Financially
constrained households and vulnerable firms, which have grown in number and
proportion during the COVID-19 pandemic, are expected to cut spending by more,
especially in countries where the insolvency framework is inefficient and
fiscal space limited,” the lender said.
To avoid
exacerbating problems, government should “calibrate the pace” of phasing out
aid and spending programs.
“Where the
recovery is well underway and balance sheets are in good shape, fiscal support
can be reduced faster, facilitating the work of central banks,” the IMF said.
For struggling
sectors, governments could offer aid to prevent bankruptcies, or provide
incentives for restructuring, rather than liquidation.
“To lessen the
burden on public finances, temporary higher taxes on excess profits could be
envisaged. This would help claw back some of the transfers to firms that did
not need them,” the lender said.
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