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.
Our new #G20 Note highlights the need for strong policy actions to prevent a #GreatDivergence between and within economies. https://t.co/xThf2uefG5 pic.twitter.com/g7pXf8aGNt
— IMF (@IMFNews) February 27, 2021
“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.
Family photo of the first #G20 Finance Ministers and Central Bank Governors meeting under the Italian Presidency #G20Italy
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The IMF Managing Director called for strong and determined action:
“First, speed up vaccinations across the world — it is the most impactful support for the recovery. We need international collaboration to accelerate production and make vaccines available everywhere as fast as possible.
“Second, resolve to provide lifelines to business and households, tailored to countries’ circumstances, until there is a durable exit from the health crisis.
“Third, step up support to vulnerable countries. Together with the World Bank we are working with countries to implement strong reforms, address debt transparency and sustainability, and expand concessional financing.”
Finally, Georgieva emphasized the need to shape a climate-resilient, digital, and inclusive future:
“And we cannot forget the major threat from climate change,”
“We will play our part in the areas of our comparative strength, such as integrating climate in public revenues and spending policies, climate-related financial stability risks and data”.
Grazie Mille to Italy for productive first G20 finance ministers/governors' mtg! Vital to speed up vaccines, maintain lifelines, provide comprehensive support to vulnerable countries, inc. proposing SDR allocation. Need all tools for climate-resilient, digital, inclusive future. pic.twitter.com/TqQfT6Kihz
— Kristalina Georgieva (@KGeorgieva) February 26, 2021
Amaka E. Nliam
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