Cannot put a timeline for recovery: IMF Chief Economist Gita Gopinath
IMF Chief Economist Gita Gopinath said the uncertainty of how long the ongoing pandemic will last is something we have not seen before, hence we cannot use historical data to make predictions at this time.
She pointed out that the size of the shock itself is what is so unique about this current crisis, adding that a strong fiscal and monetary response is required to tackle the same.
There is a real risk that as and when we come out of this pandemic, countries may become more inward-looking, Gita Gopinath told CNBC-TV18.
She said, "We saw countries become more protectionist in the run-up to this crisis," adding that we should not go backward from globalization. This, especially since we are already looking at a weak recovery and de-globalization could hurt even more.
Gopinath told CNBC-TV18 in an interview that with lockdowns being implemented around the world, many firms do not have parts they need to produce goods, which is already resulting in supply chain disruptions.
Adding that India has not yet approached the International Monetary Fund (IMF) for financial support, she said that the Indian government has prioritized things very well.
Containment measures have been put in place and the Indian government has also provided direct support to weaker sections, she said. However, we expect that more will be done by the government in terms of scale, Gopinath added.