Governments need ‘agile’ fiscal policies amid high debt and inflation, IMF says – The National

Governments need ‘agile’ fiscal policies amid high debt and inflation, IMF says – The National

Governments need more "agile" fiscal policies to address increasing commodity prices, rising inflation, slowing economic growth, high debt, tightening credit conditions and a looming climate crisis, the International Monetary Fund said.

Global co-operation is vital to address the consequences of the Covid-19 pandemic, tackle energy and food disruptions, help refugees from the Russia-Ukraine war, prepare for future potential pandemics and mitigate climate change, the Washington-based lender said in its Fiscal Report on Wednesday.

"The right policy mix depends on country circumstances. Where possible, governments should provide targeted and temporary transfers to the vulnerable while allowing domestic prices to adjust, which will help spur additional supply and avoid shortages," Vitor Gaspar, director of the Fiscal Affairs Department at the IMF, said.