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World

15. 10. 2020. 00:00   >>  17:12 0

TO MITIGATE THE CRISIS

The IMF is proposing a tax increase for the rich

Countries should consider raising taxes on the wealthy to reduce national debts after recovering from the economic fallout of the pandemic, the International Monetary Fund said Tuesday.

The IMF made that and other policy suggestions in its latest World Economic Outlook, which revised its global forecast upward for this year after advanced economies recovered well in the second and third quarters from lockdown.

The IMF said the eurozone, for example, is now set to shrink by 8.3 percent — still an improvement from June’s prediction of negative 10.2 percent. The U.S. is on course for negative 4.3 percent growth, better than the 8 percent contraction the Washington-based fund had expected.

Recent containment measures against rising infection rates, however, are dragging on the recovery and will push down next year’s projected rebound. The U.S. economy should grow by 3.1 percent in 2021, down from June’s forecast of 4.5 percent, the IMF said. The eurozone is now set to grow by 5.2 percent next year, instead of 6 percent.

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