The International Monetary Fund (IMF) is committed to continuing to help companies affected by the pandemic but that are viable in the future, and to unload something the public effort suggests temporarily raising taxes on companies that they have “excessive” profits.
In one of the documents presented during the first day of its spring meeting and relating to the debts and challenges facing the private sector, The IMF also recommends that governments “calibrate the pace of their fiscal consolidation.”
Thus, he understands that the most recovered economies can begin to reduce aid “faster”, but warns that those who are not at that point may still suffer disturbances and long-term problems.
In this report, the Fund outlines various ways in which Governments can help companies affected by the pandemic.
Thus, it considers that said support should be limited to circumstances in which there has been a “market failure” but it also warns that in the sectors hardest hit by the pandemic, which can drag the rest of the economy down, it is better to encourage restructuring or conversion.
Recognizing that deciding which potentially viable businesses to help is complicated, the Fund recommends that governments “reduce load” involved in public aid study the possibility of temporarily raise taxes on companies that have “excessive” profits.
“This would help recover some of the transfers” that have been given to firms that “did not need them,” the document adds.
In any case, the report recalls that the impact of the pandemic on the financial status of households and companies has been uneven around the world, and also depends a lot on the economic composition by sector of each country.
Services provided in person fell while production and exports of substitute goods and services for face-to-face services have improved.
Besides, the tourism and hospitality labor market still fails to recover two years after the pandemicwhile on the other hand, logistics and construction have seen their working conditions improve, especially wages.
The war in Ukraine, moreover, has hit supply chains the hardest and to energy and food prices, whose rising prices will also affect the capacity of households. (I)
Source: Eluniverso
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