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The global economic bailout is running at $19.5 trillion. It will go higher

November 17, 2020. Summarized by summa-bot.

The Federal Reserve building in Washington, D.C., U.S., on Monday, Nov. 9, 2020. Few Republican officeholders have been willing to publicly dispute President Donald Trump as he attacks the integrity of the election system, underscoring how he will remain a potent force in GOP politics even if he ultimately loses the White House. Photographer: Stefani Reynolds/Bloomberg via Getty Images

Governments and central banks have promised to shell out $19.5 trillion since the coronavirus erupted to "put a floor under the world economy," according to the International Monetary Fund. Some countries need even more help to recover from the crisis, but they might not get it.

London (CNN Business)Governments and central banks have promised to shell out $19. 5 trillion since the coronavirus erupted to "put a floor under the world economy," according to the International Monetary Fund.

Governments have announced nearly $12 trillion in stimulus measures as of September and central banks have chipped in at least $7. 5 trillion to soften the impact of the pandemic on their economies, the IMF said in its annual report on Monday.

Economic activity and employment in large parts of the world, including in the United States and Europe, remain well below levels seen before the pandemic hit.

While coronavirus vaccine candidates point to improved prospects for the global economy next year, they won't help countries much in the immediate future.

"Countries now face a long ascent that will be difficult, uneven, uncertain and prone to setbacks," said IMF Managing Director Kristalina Georgieva.

The country is still down some 10 million jobs since before the pandemic began and several states are now imposing fresh restrictions to curb the rise in cases, which will further weigh on the recovery.

The European Union, meanwhile, is facing an internal revolt that could delay the final approval of its €800 billion ($950 billion) coronavirus recovery fund, which took months to negotiate and is due to kick in on January 1.

On Monday, Hungary and Poland moved to block the package over attempts to link its distribution to respect for the rule of law, casting doubt on whether much needed funds will get to the hardest hit EU economies, including Italy, Spain and Greece.

Economists say that dialing back government support too soon will undermine the strength of the recovery from the pandemic.

While central banks are expected to unleash even more stimulus to try and juice their economies, they lack an established channel to send money directly to households.

Withdrawing fiscal support prematurely is "the biggest risk" facing economies in the short term, according to Neal Shearing, group chief economist at Capital Economics.

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