Post-Covid era: the gates of global recession are opening

The article identifies the reasons for the sharp deterioration in the global economic situation in the post-pandemic period. In particular, the article considers the new role of the IMF and the World Bank and the evolution of their approaches to debtor countries from the beginning of the introduction of the global quarantine regime to the present. Key points in the strategy of these financial institutions that do not allow debtors to get rid of the debt burden are highlighted. The systemic economic and political foundations of the current crisis in Sri Lanka are analyzed, including the role of the IMF and the World Bank, which took a hard line on spending cuts during the pandemic. The reasons for the ineffectiveness of measures to reduce the budget deficit and the public sector in the context of the priority of paying off external debt are clarified. In addition, the article highlights the interests and driving forces of the processes associated with the US stock market, operations in which are planting time bombs that can be activated at any moment and lead to perhaps the worst economic recession in modern history.