IMF Warns More Funding Needed To Safeguard Global Economy

Warning that the recovery from the pandemic is not over, the IMF on Thursday called on policymakers to continue spending money to support the global economy and keep the country from being left behind.

Without its assistance and additional funding from Washington-based crisis lenders, the International Monetary Fund would leave developing countries and the poor in many countries longer from the recession caused by Covid-19. He said he could face a backlash.

Cristalina Georgieva, managing director of the IMF, told reporters that continued support is needed to “mitigate and heal financial scars.”

“We want to make sure everyone has a fair shot to a better life.”

US Treasury Secretary Janet Yellen joined the call, urging “significant” new spending to ensure a solid recovery from the Covid-19 pandemic.

An activist dressed as Eva Peron of Argentina attended a rally for debt reform at a virtual spring meeting of the World Bank and the International Monetary Fund.

Yellen said the economic outlook has “significantly improved”, especially with the substantive government support, but “the work is not done yet due to the high uncertainty and the risk of permanent scarring.” Stated.

“We urge major countries to strive to provide significant amounts of new financial support to ensure a strong recovery, as well as avoiding the early withdrawal of aid,” he said.

The IMF forecasts global growth of 6% this year after a 3.3% contraction last year, with global public spending on $ 16 trillion during a pandemic, and the worst normal recession of the century. It prevents it from getting worse three times.

Yellen emphasized the $ 1.9 trillion US aid package signed by President Joe Biden last month and his proposal to spend $ 2 trillion on infrastructure and jobs announced last week.

US Treasury Secretary Janet Yellen called on other wealthy nations to provide

US Treasury Secretary Janet Yellen called on other wealthy nations to provide “significant” new resources to help the world economy recover.

Georgieva warned of “dangerous differences” in the outlook for low-income countries compared to rich countries.

She also praised IMF members who agreed to allow the fund to issue a new $ 650 billion special drawing right. This is an additional pool of IMF currencies that will increase national reserves and increase access to financing.

Georgieva said the IMF is working with wealthy countries to shift some of these reserves to help developing countries “face a significant policy transition from crisis to recovery.” Said.

Yellen said the US economy “could reach full employment soon next year” due to stimulus measures already boosting its recovery from the pandemic closure, but many developing countries have their own economies. Does not have the same resources to support.

Authorities again emphasized that the end of the health crisis remains central to the economic recovery, and the closing statement of the fund’s steering committee, IMFC, lamented “uneven access to vaccines.”

Georgieva emphasized that vaccination is an economic policy, and the IMFC emphasized “the need for strong international cooperation to accelerate vaccine production and support affordable and equitable distribution to all.” did.

Yellen said US support for vaccine deployment, including efforts to “make sure funding does not interfere with global vaccination and ensure robust, fair and transparent vaccination deployments.” I promised.

IMF Warns More Funding Needed To Safeguard Global Economy Source link IMF Warns More Funding Needed To Safeguard Global Economy

Back to top button