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IMF's Global Report of 2020

Hello Everyone and welcome to all of you on your website. Today I am going to tell you IMF's Global  Report of 2020. If all of you want to know, then all of you must read this article carefully, and If you still do not understand anything at all then all of you can tell me in the comment section below, I will help you.
IMF

IMF stands for International Monetary Fund was created on 27 december1945, it is also known as” The Fund”. IMF is headquartered at Washington D.C and has 189 member countries.

It is an International Financial Institution created to provide short term loans to its member countries (189), promote international monetary cooperation, facilitate international  trade, foster sustainable economic growth, make resources available to members experiencing balance of payment difficulties.


IMF



Kristalina Georgieva is the managing director of IMF.

Gita Gopinath has been appointed as Chief Economist at IMF ( she was the Economic Advisor to the CM of kerala).
Financial year of IMF is from 1st may to 30th April. It provide its report twice in a year.
IMF is regarded as “ Guardian to good conduct” in area of BOP ( Balance of payment), if any member country of IMF is facing some financial problems so IMF act as guardian for that country.

How IMF have fund?

Countries contribute funds to a pool through quota system from which countries experiencing balance of payment problems can borrow money. The IMF took fund in the form of SDR. IMF took high amount from most developed country , the highest fund provided by the U.S.A

SDR ( special drawing rights)
 The main motive of IMF is to provide economic assistance to its member countries for eliminating the adverse BOP. To solve the problem of international liquidity it IMF started the concept of (SDR)Paper Gold

The SDR is an international reserve asset ( 189 countries have their own currency which are different from each other, to solve this probem SDR was created by IMF in 1969 to take the fund from all countries in one form). We can say the currency of IMF is sdrthe other name of SDR is paper gold.

The value of SDR is determined by the Basket of 5 currencies . they are:

1.     US Dollar
2.     Japanese Yen
3.     Euro
4.     British Pound
5.     Chinese Renminbi ( updated on October 2016)

Functions of IMF

1.     Overseeing the economies of the member countries.

2.     Lending the countries with the BOP issues.

3.       Offering technical assistance to its member countries.


World Economic Outlook by IMF


 A survey by the IMF staff usually published twice a year. IMF says the world will “very likely” experience worst recession since the 1930s. the global economy in 2020 is -3.0, the Advanced Economics (U.S.A) is -6.1 and Emerging Market and Developing Economics is -1.0 and in 2021 all the game will change again mean all the negative value change into positive values.





Real GDP, annual percent change
2019
2020
2021
World output
2.9
-3.0
5.8
Advanced economics
1.7
-6.1
4.5

United states
2.3
-5.9
4.7

Itlay
0.3
-9.1
4.8
France
1.3
-7.2
4.5

China
6.1
1.2
9.2

India

4.2
1.9
7.4



The growth rate of india is better than china and other countries in the year 2020 so this is a very good news for india but in 2021 india got failure than china because china’s growth rate is higher than in India in the year 2021, so india have a great opportunity to lag behind china by doing some efforts.




IMF chief Kristalina Georgieva : we have entered recession

Recession :  In a year, there are 4 quarters ( 3 months) if in 2 consecutive quarters the growth of the country decreases, the growth of the country occurred but in decrease rate so the recession happened and if it happens more than 6 months then depression comes.

Why this happen?

it is the game of demand and supply, how a bank earns : the bank earn by an interest , coronavirus entered and people stopped their livelihood by keeping themselves in their house so production stopped because production done by people but now that people kept in isolation the people stopped the supply but at the same time they stopped their demand also because now they  haven’t that much money to demand.
This causes bank faces a lot as they faced in 2009 ( U.S.A), in the world demand and supply stopped that’s why world faces recession.



About the Post

Through this article, I told you all IMF's Global  Report of 2020 , If anyone has liked my Article then share it with your Friends, Also Besides, if you all have any confusion. All of you can tell me in the comment section below, I will help you.

3 Comments

  1. You give us a valuable knowledge alwyase
    But i have a dought
    How we are exactly confirm this economic chart is decide everythink? What is the plan ? Could you explain me dear

    ReplyDelete
    Replies
    1. Ye chart information deta h ki ham kha stand kr rhe h, just like jab ham class m pdhte the tab result m hme report card milta tha ur wo btata tha ki hme ab kitna potential Dena h same here jse ham whan strategy bnate the apne apko improve krne k lie sari.countries ko bhi aisa hi krna chahie

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