Covid-19: Crisis or opportunity?
Kristalina Giorgeva, Managing Director of the International Monetary Fund (IMF), released this post at the “Global economy” blog of this organism, after the recent virtual Spring Meetings of the institution.
- “This is a crisis like no other.” The IMF´s latest estimates show “global economic activity to decline on a scale we have not seen since the Great Depression”. To deal with this situation the response from governments and other public and private institutions has been “like no other: governments all over the world have taken unprecedented action to fight the pandemic, to protect their societies and economies. Fiscal measures so far have amounted to about $8 trillion and central banks have undertaken massive liquidity injections.”
- In this context, she highlights the difficult situation of emerging markets and developing countries as they have experienced “the sharpest portfolio flow reversal on record, of about $100bn.”
- Looking forward she points out to some questions that will become very relevant in the recovery phase: “how long to maintain the extraordinary stimulus and unconventional policy measures, and how to unwind them; dealing with high unemployment and “lower-for-longer” interest rates; preserving financial stability; and, where needed, facilitating sectoral adjustment and private sector debt workouts”
- Finally she reminds us that along with the covid-19 crisis, there are other global challenges that will also require a "collective response", such as the climate change. This crisis can be transformed into a great opportunity for the future, if we take advantage of the fiscal stimulus needed to overcome covid-19 crisis to “craft a different and better future together”.
Filter results
According to IE University’s Center for the Governance of Change, deeper and more integrated financial markets would strengthen the euro’s global role. This requires, among other elements, resilient and interoperable payment systems and completing the banking union.
Partnerships between banks and private credit: The winners will be those that combine bank underwriting discipline, distribution, and customer access with private capital’s appetite for long-dated, illiquid risk, according to Oliver Wyman.
Lucrezia Reichlin (CEPR): A CBDC is not a prerequisite for monetary sovereignty. Confusing money with payments can risk misdiagnosing the problem and misaligning economic policy efforts.
According to the World Economic Forum´s Global Risk Report 2026, geoeconomic confrontation, mis- and disinformation and societal polarization make up the top three short-term risks, while environmental risks dominate in the long term.
According to the World Economic Forum, over the last few years AI has moved from experimentation to workflow integration, promising systemic gains in productivity while also raising critical questions around economic inclusion, values, trust and resilience.
According to AFME, a clearer, more coherent, and proportionate regulatory environment, without unnecessary layers and focuses on growth and competitiveness, is keyl to increase investor confidence, unlock private capital and deepen European capital markets
According to the Center for the Governance of Change at IE University, Europeans support technological progress if it reinforces security, inclusion, and social welfare; but resist it when change feels imposed, opaque, or misaligned with their values.
According to a recent report released by CEPS, European financial regulators should adopt competitiveness as a formal secondary objective, following the precedent established by the UK's Financial Services and Markets Act 2023.
According to the OECD. SMEs and start-ups that grow rapidly contribute significantly to job creation, economic growth and competitiveness. Indeed, SMEs that grow by one-third over a three-year period, contribute about as much to job creation as large firms.
According to @McKinsey, banks must prepare for a new growth curve. Strategic precision —the ability to combine technology, capital discipline, and deep customer insight— will distinguish the leaders from the laggards.
According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.
According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.