“That is not only danger for them, it is a danger for global supply chains, it’s a danger for investor confidence -- in other words, it has a ricochet impact on advanced economies," she said. “Closing our eyes to this divergence can harm not only those countries and their people, which is bad enough, but it can harm the global recovery and it can harm investor sentiment in a way that we see to be significant and requiring very close attention." Measures taken to stimulate the U.S. economy are, on balance, translating into “good news" for other countries because of the spillover effect of demand, the IMF chief said. We have to step up and then shrink this very dangerous divergence," she said at a later Washington Post roundtable. Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter.

Source: Mint May 25, 2021 19:36 UTC