IMF seeks strong G20 policies; warns of “dangerous divergence”

Amaka E. Nliam

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The International Monetary Fund (IMF) has called for strong G20 policies, while warning of a dangerous divergence between and within economies.

 

The IMF Managing Director, Kristalina Georgieva, made the call during the just concluded virtual meeting of the G20 Finance Ministers and Central Bank Governors.

“The world economy is on the path of recovery. Yet, uncertainties remain very high, as vaccinations still have a long way to go against new waves and variants of the virus.

 

“And we see dangerous divergence between and within economies.

 

“In emerging and developing countries, excluding China, we project by 2022 cumulative per capita income losses as high as 22 percent, versus 13 percent in advanced economies. And we forecast that only half of the countries that were narrowing their income gaps relative to advanced economies will continue to do so over 2020-22. Within countries, the young, the low-skilled, and women have been disproportionately affected by job losses,”  said Kristalina Georgieva.

 

The meeting was chaired by the Government of Italy and Minister of Economy and Finance, Daniele Franco and Governor Ignazio Visco.