IMF warns against premature withdrawal of stimulus amid Covid resurgence

Leaders of the global economy are warning that the recovery from this year’s recession is at risk and could be derailed as the resurgence of Covid-19 forces fresh restrictions on households and companies.

Both the International Monetary Fund and the Group of 20 — which comprises the world’s richest nations — sounded the alert as leaders of the G-20 prepare for a virtual summit this weekend, hosted by Saudi Arabia. The IMF noted progress on a vaccine, but also said elevated asset prices point to a disconnect from the real economy and a potential threat to financial stability.

“While global economic activity