The International Monetary Fund calls for the eurozone for additional fiscal stimulus

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The International Monetary Fund has said that eurozone countries should allocate an additional fiscal stimulus of 3% of GDP during 2021 and 2022 to boost economic growth by 2% of GDP by the end of next year and reduce the negative effects of the epidemic. The eurozone countries had provided more than 3 trillion euros in fiscal stimulus plans and national liquidity last year to maintain the continuity of their economies, and some, such as Italy, announce new support measures, as the third wave of the epidemic led to new closures across the country. In its regional outlook for the euro area, the IMF added that additional fiscal consolidation could be followed by stronger reinforcement once the spare capacity is reduced. This will have greater benefits for low-income households and fewer side effects than additional monetary stimulus. It will also bring inflation closer to the target in many countries and help rebuild. Monetary policy space

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