‘Global economic recovery unlikely, without vaccine’ Sep 10, 2020 0 692 12345 AFPWashingtonThe global economy is showing signs of bouncing back from the severe downturn caused by the global coronavirus pandemic, but a full recovery is “unlikely” without a vaccine, IMF chief Kristalina Georgieva said Wednesday.In a column co-authored with IMF chief economist Gita Gopinath, the officials stressed that governments should continue to support workers and businesses since the unprecedented nature of the crisis could give rise to a wave of bankruptcies and job destruction.As lockdowns have eased and businesses around the world have been allowed to reopen, there has been a “sharp rebound of output, consumption and employment,” they said in Foreign Policy magazine.The massive scale and speed of government support has helped cushion the blow and allowed for the initial rebound, Gopinath and Georgieva wrote.“This crisis, however, is far from over,” they said. “The recovery remains very fragile and uneven across regions and sectors. To ensure that the recovery continues, it is essential that support not be prematurely withdrawn.”Businesses, even insolvent firms, will need continued help to prevent destruction of millions of jobs. That could include governments taking equity in firms or providing grants in exchange for higher tax rates later, they said.But governments will have to be cautious in how they distribute their scarce resources, and some companies will inevitably fail, especially in industries like travel that may not survive or will be curtailed in a post-pandemic world.In a speech Wednesday to the World Economic Forum, Georgieva said rapid government action “put a floor under the world economy,” which helped everyone without “differentiating between... winners and losers.”Going forward, policymakers will need to invest wisely in areas that have the broadest benefit, including green jobs -- such as training workers to make buildings more energy efficient -- and “accelerating digital transformation” in a way that will reduce inequalities, she said.“In other words, support programs that take the countries towards growth that is green smart and inclusive,” the IMF chief said. Pages 1234 RELATED ARTICLES VW former CEO to stand trial five years after ‘dieselgate’ scandal Sep 10, 2020 0 613 The spectre of no-deal Brexit returns to haunt virus-hit UK Sep 10, 2020 0 595 Coronavirus costs auto industry billions worldwide Sep 10, 2020 0 649 Bank of Canada maintains key lending rate at 0.25% AFP Ottawa Canada’s central bank held its key lending rate at 0.25 percent on Wednesday, saying it expects a “slow and choppy” recovery from pandemic woes. With inflation at near zero, it also vowed to keep interest rates ..