The International Monetary Fund (IMF) logo can be seen during a press conference in Santiago, Chile, on July 23, 2019. Agencies via China Daily / Asia News Network

Washington, USA – The global economic recovery from the COVID-19 crisis will slow this year as countries grapple with soaring prices, heavy debt burdens and varied recoveries from the poor Countries are lagging behind more affluent, the IMF leader warns Tuesday.

While the Washington-based crisis lender has hundreds of billions of dollars in new firepower to help countries recover from the disaster, IMF chief executive Kristalina Georgieva said that factors such as rising food prices and unequal access to vaccines have taken their toll.

“We are facing a global recovery that is still ‘hampered’ by the pandemic and its effects. We’re not in a position to make any real headway, ”Georgieva said, according to prepared remarks the IMF released ahead of her speech at Bocconi University in Milan on Tuesday.

The Washington-based crisis lender will be releasing new growth forecasts next week , but Georgieva warned, “We now expect growth to slow slightly this year” from July’s six percent forecast, and “the risks and barriers to a balanced global recovery have offset”. more stressed. “

This includes increasing divergence between rich countries and poor countries as they recover from the pandemic.

” Economic performance in the advanced economies is expected to return to pre-pandemic trends by 2022. But most emerging and developing countries will take many years to recover, “said Georgieva.

” This delayed recovery will make it even more difficult to avoid long-term economic scars – including job losses that affect young people, Hit women and informal workers especially hard. ”

Georgieva’s speech in Italy will precede the fall meetings of the IMF and World Bank, where the former will present their latest World Economic Outlook, forecasting a range of topics.

Since its last report in July, the IMF’s toolkit for dealing with global crises has been increased by increasing cash reserves for the Mit member states by $ 650 billion, known as Special Drawing Rights.

These reserves, of which $ 275 billion went to emerging and developing countries, give countries funds to use in their recovery Economy can fall back on. In her speech, Georgieva urged countries that don’t need her to feed her into the Fund’s poverty reduction programs.

Georgieva compared the global recovery from the pandemic to “walking with stones in our shoes” and said it could off the rails.

Italy and other European nations are seeing their economies accelerate, but the world’s economic giants, the United States and China, are experiencing declining momentum, she says.

“In contrast, this is deteriorating Growth continues in many other countries, hampered by poor access to vaccines and limited policy response, “said Georgieva, adding,” this divergence in economic development is becoming more and more persistent. “

One reason is that Inflation that has crept in worldwide. Food prices rose more than 30 percent last year, Georgieva said, and energy prices rose too.

The fund expects the spikes to subside next year, but will continue in emerging and developing countries, said Georgieva.

Action is needed to fill these gaps, including increasing the availability of COVID-19 vaccines, but Georgieva said “a bigger push” is needed to meet the IMF and World Bank goals of 40 Percent vaccination globally by the end of this year and 70 percent in the first year to reach half of 2022.

She also urged countries to seize the opportunity to implement economic reforms aimed at reducing carbon emissions, a build digital infrastructure and introduce a global minimum tax to curb corporate tax outsourcing.

Georgieva spoke amid the ongoing aftermath of an independent In her research last month, during her tenure at the World Bank, she was among the top officials in the 2018 edition of her closely watched Doing Business report urging employees to change the data in favor of China.

.inline_ffff input {width: 70%! important; }
.bypro {
float right;
Width: 71%;
Text alignment: center;
Margin-up: -12px;
Right margin: 15px;
Delete both;
Color: # 5C5C5C;
Font size: 8px! Important;
Line height: 9px! Important;

}
.lfform-inquirer-horizontal h2 {
font-weight: bold! important;
Font family: mallory! Important;
}
@media only screen and (min-width: 360px) and (max-width: 767px) {
.lfform-inquirer-horizontal # myForm3 {
Width: 100%;
Display: flexible;
Flex wrap: wrap;
justify-content: middle;
}
.lfform-inquirer img {
Width: 100%! Important;
Margin: 0! Important;
}
.bypro {
Top margin: 10px;
}
.lfform-inquirer-horizontal input [type = “email”] {

Width: 100%! Important;
}
.lfform-inquirer-horizontal input [type = “submit”], .lfform-inquirer-horizontal input [type = “button”] {

Width: 100%! Important;
}
}

You can find more news about the novel coronavirus here.
What you need to know about Corona.

For more information on COVID-19, call the DOH hotline: (02) 86517800 local 1149/1150.

The Inquirer Foundation supports our frontliners in the healthcare sector and continues to accept monetary donations that are deposited into the current account of Banco de Oro (BDO) # 007960018860 or donated via PayMaya via this link.

Subscribe to INQUIRER PLUS to Get access to the other 70 titles of the Philippine Daily Inquirer &, share up to 5 gadgets, listen to the news, download & as early as 4 a.m. and share articles on social media. Call 896 6000.

By providing an email address. I agree to the terms of use and
confirm that I have read the privacy policy.

We use cookies to give you the best experience on our website. By continuing, you consent to our use of cookies. To learn more, please click this link.

Ref: https://business.inquirer.net