IMF calls for urgent global policy action to control Covid-19

Managing Director of the International Monetary Fund (IMF), Ms. Kristalina Georgieva has said that urgent policy action is needed to control the Corona Virus pandemic, limit scarring, and transform the global economy. In a statement issued after the conclusion of the Sixth “1+6” Roundtable convened virtually by the Chinese authorities. She said “Our policy priorities are to vaccinate the world, calibrate policies to pandemic and economic developments, and accelerate reforms to build sustainable and inclusive economies. 

“Since we last met, the global economy has continued to recover, but the recovery faces many risks, including the uncertain path of the pandemic amid the arrival of new variants, and the outlook on inflation. China achieved a truly remarkable recovery, but its growth momentum has been slowing notably. As China is a vital engine for global growth, taking strong actions to support high-quality growth will help not only China, but the world.” Supporting the global recovery will be a joint task that we need to tackle together. During the roundtable discussion, I stressed four areas for global cooperation. First, urgent action is needed to reach the IMF’s pandemic proposal to vaccinate 40 percent in each country by the end of this year and 70 percent by mid-2022. Here, we acknowledge China’s important contributions to expanding access to vaccines. 

“Second, we need to cooperate to reduce trade tensions and strengthen the multilateral trading system, which is a key engine for growth and jobs. Third, more ambition is needed to accelerate the transition to net-zero carbon emissions and to support climate adaption efforts, tapping all policy levers available. China’s climate strategy is taking shape and will play an important role in global climate efforts. Finally, many developing economies will need the global community’s support in their recovery , as they face shrinking fiscal space and rising debt burdens. The historic $650 billion SDR allocation can support these efforts, as can the option for members to on-lend their SDRs. Here I would like to recognize the very helpful announcement of President Xi to channel USD 10 billion of China’s SDR allocation to support Africa. As critical will be swiftly implementing the G-20 Common Framework for Debt Treatments. I welcome continued engagement with China on the Framework.”