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V-shaped recovery observed in various high-frequency indicators: Nirmala Sitharaman

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NEW DELHI: Finance Minister Nirmala Sitharaman said Thursday that a V-shaped recovery pattern is being observed in several high-frequency indicators, driven by various measures taken by the government to revive economic growth, hit harshly for the outbreak of the COVID-19 pandemic.
In his speech to the plenary meeting of the International Monetary and Financial Committee (IMFC), the ministerial-level committee of the International Monetary Fund (IMF), via videoconference, said that several low-income and developing countries are facing the challenge. to protect and secure the livelihoods of millions of people who are below the poverty line.
Sitharaman mentioned that recovery and rehabilitation efforts in these countries should not be allowed to be undermined in any way, a statement from the Finance Ministry said.
He described the measures of the “Aatmanirbhar Bharat” package to promote a faster and stronger economic recovery in India.
He mentioned that the V-shaped recovery pattern is being seen in several high-frequency indicators, including the manufacturing PMI that reached the highest level in the last eight years in the month of September 2020, presenting a strong recovery outlook for the manufacturing sector, “it said.
To stimulate consumer spending, he said that $ 10 billion worth of measures have recently been announced.
Earlier this week, the government announced a package of Rs 73,000 crore, which includes the advance payment of a portion of salaries to central government employees and cash in lieu of the Leave Travel Grant (LTC), for stimulate consumer demand and investment in the coronavirus-damaged economy. pandemic.
The minister also congratulated IMF Managing Director Kristalina Georgieva and the IMF for providing wise advice to economies around the world, noting that the IMF’s claim that a premature withdrawal of policy support could trigger liquidity shortages and bad debt is relevant, according to the statement.
Discussions at the meeting were based on the IMF Managing Director’s Global Policy Agenda titled “Catalyzing a Resilient Recovery,” he added.
IMFC members updated the committee on actions and measures taken by member countries to combat COVID-19 and its adverse impacts, it said.
The IMFC meets twice a year, once during the spring meetings between funds and banks in April and again during the annual meetings in October. It analyzes issues of common concern affecting the world economy and advises the IMF on the direction of its work.
This year, due to the COVID-19 outbreak, both the spring and annual meetings were held via video conference.

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