IMF Warned For The Post Pandemic Period

IMF warned for the post pandemic period. The IMF noted that the pandemic increased inequality.

The International Monetary Fund (IMF) warned that increased inequality during the coronavirus (Covid-19) epidemic may create an erosion of trust in governments, and this situation may cause polarization and social unrest. "These factors make it difficult to develop appropriate economic policies and pose a risk to macroeconomic stability," the Washington-based institution reported. It was stated that the income inequality has increased even more in developed and large developing countries in the last 30 years. Last year, 95 million more people reached the extreme poverty line, according to the report. In the report in question, it was also noted that the pandemic weakened public finances, countries will need to generate additional income and spend more effectively. The IMF has advised policymakers to take tax policy reform and steps in the health and education system against growing inequality. The IMF also stated that these reforms are not 'cheap', and that basic services can cost up to $ 3 trillion for 121 developing country economies. In addition, IMF Chairman Kristalina Georgieva said in a speech on Tuesday that they expect a "multi-speed" recovery due to the diversity in economies.     This article has contributions of Bloomberg HT.