The coronavirus crisis will wreak “lasting damage” on people’s living standards across the world and taxes on the rich and on companies may have to rise to address this economic harm, the IMF has warned.
The pandemic will leave significant scars on the global economy in the form of job losses and bankruptcies and whole sectors of the economy will be left unviable, according to the fund’s first medium-term forecasts since the onset of the virus.
This damage will persist because the adjustment from struggling sectors such as travel to expanding ones such as digital technology will inevitably be slow and painful for many people, the IMF said in its twice-yearly World Economic Outlook, published on Tuesday.
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