IMF chief Kristalina Georgieva urges continued strong policy action

WASHINGTON: International Monetary Fund (IMF) Managing Director Kristalina Georgieva has called for continued strong policy action to combat continued uncertainty as countries have started to revive from the Covid-19 crisis.

"The resurgence in infections in many economies shows just how difficult and uncertain this ascent will be," Georgieva wrote in a blog published on Thursday ahead of the upcoming G20 Leaders' Summit.

While the good news is the "significant progress" on vaccine development, the "not-so-good news" is the severity of the pandemic and its negative economic impact, Xinhua news agency quoted the IMF chief as saying. In its latest World Economic Outlook (WEO) report released last month, the IMF projected the global economy to contract sharply by 4.4 per cent this year.

It expected a partial and uneven recovery next year, with growth at 5.2 per cent.

Citing the IMF's note to the G20 leaders' summit, Georgieva said the most recent data for contact-intensive service industries point to "a slowing momentum" in economies where the pandemic is resurging.

"While a medical solution to the crisis is now in sight, the economic path ahead remains difficult and prone to setbacks," she said.

Urging governments to act swiftly together, the IMF chief laid out three key priorities: end the health crisis, reinforce the economic bridge to recovery, and build the foundations of a better 21st-century economy.

"The resurgence in infections is a powerful reminder that a sustainable economic recovery cannot be achieved anywhere unless we defeat the pandemic everywhere," she said.

Georgieva highlighted the importance of cooperation across borders to lower the risk of an inadequate supply of vaccines, treatments, and tests, calling for enhanced multilateral efforts on the manufacturing, purchase, and distribution of these health solutions, especially in poorer nations.

According to IMF estimation, faster progress on widely shared medical solutions could add almost $9 trillion to global income by 2025.

Georgieva noted that the world, led by G20 economies, has taken "unprecedented and synchronized measures that put a floor under the world economy", including $12 trillion in fiscal actions and massive liquidity support from central banks. (IANS)

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