Home / Knowledge / News / Textiles / Ascent to full recovery likely to be long, uncertain: IMF

Ascent to full recovery likely to be long, uncertain: IMF

Oct '20
Pic: Shutterstock
Pic: Shutterstock
The ascent to a full economic recovery will likely be long, uneven and uncertain, yet there are some reasons to be hopeful, International Monetary Fund (IMF) deputy managing director Tao Zhang told the 2nd Bund Summit in Shanghai through videoconference recently. Recent data suggest many economies have started to recover at a faster pace than anticipated, he said.

Macro policy support must not be withdrawn before the recovery has gained traction, the IMF official said.

Policymakers will need to look beyond the immediate recovery and make sure that any measures implemented now also serve the longer-term need to help generate more inclusive, smarter and greener growth in the period ahead, he said.

Global growth is projected at minus 4.4 per cent in 2020 and 5.2 per cent in 2021. IMF’s 2020 prediction is less severe than its June 2020 projections.

The revision is driven by a 2.3 percentage point increase in projected growth for advanced economies, reflecting their better second-quarter gross domestic product (GDP) numbers, he said. In addition, China’s return to growth has been stronger than expected in June, and IMF has revised its 2020 forecast for China up by 0.9 per cent.

For many other emerging market and developing economies, however, prospects remain precarious, he cautioned.

The unprecedented fiscal, monetary, and regulatory responses across the world have so far prevented a recurrence of the financial catastrophe of 2008–09 at the global level, he said.

For the Asia-Pacific region as a whole, growth has been downgraded by 0.6 of a per cent from IMF’s June projections. IMF now forecasts a 2.2 per cent contraction for the region in 2020—the most severe contraction in living memory, he said.

Indeed, last October, before the pandemic, IMF had projected the Asia-Pacific region to grow at 5.1 percent in 2020. The expected loss of output in that region is likely to be tremendous and may take years to recover, he said.

Bucking this trend, China’s growth outlook has improved to 1.9 per cent from the June projection of 1 per cent. As the world’s second largest economy, China remains the main trading partner for the region, accounting for more than 20 per cent of the Asia and Pacific region’s total trade. China’s recovery will support growth in the Asia-Pacific region and the rest of the world, he said.

Cautioning that IMF forecast is subject to exceptionally high uncertainty, he said progress on treatments and vaccines might be slower than anticipated and access may be unequal. Economic activity could be lower than expected, with renewed social distancing and lockdowns. And deteriorating financial sentiment could trigger a sudden stop in new lending or result in a failure to roll over existing debt, he added.

Fibre2Fashion News Desk (DS)

Must ReadView All

Pic: Shutterstock

Textiles | On 23rd Nov 2020

Japan aims to expand CPTPP trade pact

Japanese Prime Minister Yoshihide Suga recently said his country...

Pic: Shutterstock

Textiles | On 23rd Nov 2020

Bangladesh gets $256.5 mn from Green Climate Fund

Bangladesh recently received $256.5 million from the UN Green Climate ...

Pic: Mulberry

Apparel/Garments | On 23rd Nov 2020

Frasers raises Mulberry stake to 37%, considers offer

The Frasers Group, formerly called Sports Direct, recently announced...

Interviews View All

Software Firms, Head honchos

Software Firms
Head honchos

AI / robotics may challenge existing long value chains

Nishank Patel, Shri Dinesh Mills Limited

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Evelyne Cholet, UCMTF

Evelyne Cholet

‘France had a reputation of being big in new ideas, but poor in marketing...

Abhishek Ralli,

Abhishek Ralli

Founded in 1962 in Agra, Guide Footwear manufactures men’s footwear for...

Teresa Neal,

Teresa Neal

Teresa Neal, an art professional with 25 years of experience, in...

Michael Van Den Dolder,

Michael Van Den Dolder

Family-owned German textile machinery manufacturer Trützschler operates...

Chunyi Zhi, City University of Hong Kong

Chunyi Zhi
City University of Hong Kong

<div><b>Chunyi Zhi</b>, associate professor in the Department of Materials ...

Johan Berlin, InvestKonsult Sweden AB

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Urs Stalder, Sanitized AG

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Sweta Agarwal, A Humming Way

Sweta Agarwal
A Humming Way

A Humming Way (AHW) is inspired by the old-world regalia of Rajasthan...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Igor Chapurin, Chapurin

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

November 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search