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IMF calls for additional financial stimulus for euro zone in 2021-22 According to Reuters


© Reuters. FILE PHOTO: The International Monetary Fund logo is visible outside the main office building

BRUSSELS (Reuters) – Eurozone countries should apply additional fiscal stimulus measures of 3% of GDP in the period of 2021-2022 to boost economic growth by 2% of GDP by the end of next year and reduce the impact. of the pandemic, the Fund said.

In its regional outlook for the euro zone, the IMF said the additional fiscal boost could then be followed by stronger consolidation as excess capacity was reduced.

“Such additional support at 3% of GDP between 2021-2022 could lift output by around 2% by the end of 2022 and halve medium-term scarring,” said the IMF. of supply “. report.

“This will bring greater benefits to low-income households and less side effects than additional monetary stimulus. It will also bring inflation closer to the target in many countries and help. rebuilding the monetary policy space “.

Last year, Eurozone countries provided more than 3 trillion euros for national liquidity and fiscal stimulus programs to keep their economies growing and some, like Italy, is announcing new support measures as the third wave of the pandemic causes new blockades across the bloc.

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