File photo of the IMF building
More than ever, we need strong international cooperation, especially in the development and distribution of vaccines. Faster progress on medical solutions could speed recovery; it could add nearly $ 9 trillion to global revenue by 2025.
- News18.com
- Last update: October 14, 2020 11:36 PM IST
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Washington: The IMF proposed three policy priorities on Wednesday, including continuing essential measures to protect lives and livelihoods, build a more resilient and inclusive economy, and deal with debt to overcome the COVID-19 crisis and build a future. brighter. IMF Managing Director Kristalina Georgieva said that nine months after the pandemic, the world continues to grapple with the darkness of a crisis that has claimed more than a million lives and caused the economy to reverse, leading to unemployment. much higher, an increase in poverty and risk of a lost generation in low-income countries.
More than ever, we need strong international cooperation, especially in the development and distribution of vaccines. Faster progress on medical solutions could speed recovery; it could add nearly $ 9 trillion to global income by 2025. Which, in turn, could help narrow the income gap between the poorest and richest nations, Georgieva told reporters at a news conference. Publishing the Global Policy Agenda at the beginning of the annual meetings of the International Monetary Fund (IMF) and the World Bank, Georgieva said that three steps are needed to overcome the crisis and build a better future.
First, continue with essential measures to protect lives and livelihoods. A lasting economic recovery is only possible if we overcome the pandemic everywhere. It is imperative to intensify vital health measures. Like fiscal and monetary support to households and businesses, he said. These lifesavers, such as loan guarantees and wage subsidies, are likely to remain critical for some time to ensure economic and financial stability. If you disconnect too early, you risk serious self-harm, he warned.
Second: build a more resilient and inclusive economy. Our new research shows that public investment, especially in green projects and digital infrastructure, can be a game changer. It has the potential to create millions of new jobs while increasing productivity and income, Georgieva said. Supporting workers in their transition to new jobs is another key feature of a more resilient and inclusive future. This is particularly important for women and young people, who have been disproportionately affected by the crisis, he said.
“Third: deal with debt, he said, adding that global public debt is projected to reach a record 100 percent of GDP in 2021. This is partly because countries need to boost spending to combat the crisis and ensuring recovery. This issue will be critical in the medium term. But for many low-income countries, urgent action is now required, he said. Given their heavy debt burdens, they are now struggling to maintain vital political support. They need access to more. grants, concessional credit and debt relief, said the IMF chief.
The outlook in recent months has turned less dire, but we continue to project the worst global recession since the Great Depression. Growth is expected to fall to -4.4 percent this year, he said, adding that over the next five years, the crisis could cost an estimated $ 28 trillion in lost production. At the same time, we can see stars shining down on us. We see unprecedented efforts in vaccine development and treatment. We see extraordinary and coordinated fiscal and monetary measures that put a floor to the world economy. And the world is beginning to learn to live with the virus, he said.
While there is tremendous uncertainty surrounding our forecast, we project a partial and uneven recovery in 2021, with growth expected at 5.2%, Georgieva said. All countries, he warned, now face a long Ascenta journey that will be difficult, uneven, uncertain and prone to setbacks.
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