A heavy toll is already evident: The IMF has forecast global GDP to contract 4.4% in 2020 – and growth will remain at a modest 5.2% next year as countries experience a “partial recovery and unequal ”.
The outlook has deteriorated for developing countries and the fallout from COVID-19 is expected to leave global GDP more than 6 percentage points below pre-pandemic projections for 2021.
Georgieva called for cooperation from IMF member states on three key priorities: ending the coronavirus health crisis, supporting the economic bridge to recovery, and laying the foundation for a more just and inclusive economy for the coming decade.
The IMF is an organization of 190 countries focused on global monetary policy, trade and poverty reduction.
Countries must increase public spending on treatment, testing and contact tracing for COVID-19, remove trade restrictions on medical products and services, and step up “multilateral efforts on manufacturing, purchasing and distribution Of vaccines, treatments and tests, especially for income nations, Georgieva wrote.
The Managing Director of the IMF also urged countries to renew their tax support for hard-hit workers and businesses, including “cash transfers to households, help to keep jobs and increase unemployment benefits. , Many of which have already expired or are about to expire at the end of this year.
Investments in infrastructure that meet climate goals are also essential, Georgieva said, adding that a multilateral approach would actually save countries money over time and double global GDP growth.
An “unsynchronized approach” would lead to just under 1.2% global GDP growth by 2025, compared to 2% if countries were to work together, she argued.
Environmental sustainability and supporting workers in their transition to new industries following the global disruption of the coronavirus crisis are also essential, Georgieva wrote, urging G20 leaders to remember who is not at the table during the meeting. summit this weekend and commit to supporting the poorest countries. thanks to the economic recovery.
G20 leaders are scheduled to meet on November 21. But unlike in previous years, world leaders won’t come together for a big group photo. Due to the pandemic, the summit will be held virtually and will be hosted by Saudi Arabia.
Some US and EU lawmakers have urged their countries to boycott or reduce their participation at the summit unless Saudi authorities tackle serious human rights abuses, including the kingdom’s continued war in Yemen, murder of Saudi journalist Jamal Khashoggi and the imprisonment of activists in Riyadh.
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