After completing a review in accordance with Article IV of the world’s largest economies, the IMF experts pointed out other risks:
Increasing levels of government debt and corporate debt significantly.
Low or possibly negative inflation potential.
The fund considered the re-emergence of Covid-19 infections a “major threat” to the US economy, and urged the authorities to “make new efforts” to combat the epidemic and address social and economic challenges in the United States.
The International Monetary Fund estimated that US gross domestic product contracted by 37% in the second quarter of the year on an annual basis, as a direct result of containment measures “despite unprecedented political support.”
“There is tremendous haze in the breadth of the Covid-19 economic shock,” the fund said in a statement. “It will likely take a longer period to reform the economy and return activity to pre-pandemic levels.”
He called for the application of more stimulus measures to help alleviate the crisis, as well as longer-term investments in areas such as infrastructure.
The fund expected the size of the US economy to grow by 3.9% in 2021. But that will not be enough to compensate for the stagnation caused by the Corona virus pandemic this year.