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IMF head calls for faster vaccination to maintain global recovery

By Chen Jia | chinadaily.com.cn | Updated: 2021-05-29 10:02
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Kristalina Georgieva, managing director of the International Monetary Fund. [Photo provided to chinadaily.com.cn]

Policymakers should take right moves to give people fair shots at the vaccine and safeguard recovery from the coronavirus shocks, as the global recovery paths and pace are diverging, the International Monetary Fund chief said on Saturday.

For offering fair opportunities of recovery, digital infrastructure, new climate economy and the financial sector will be very important, IMF Managing Director Kristalina Georgieva said in her speech delivered via video at the International Finance Forum's Spring Meeting held in Beijing.

At least 40 percent of the global population needs to be vaccinated by the end of this year, and at least 60 percent by mid-2022. Such a plan will cost around $50 billion globally, while faster vaccination can result in higher global output of $9 trillion between now and 2025, the IMF estimated.

"China's efforts are commendable, by making vaccine supplies available abroad while keeping up the accelerated pace of vaccination at home," said Georgieva, who called pandemic policy "the best economic policy".

China is one of the countries that have shown that promoting e-commerce and fintech broaden access to financial services, and promoting digital infrastructure can boost productivity and income, she said.

Meanwhile, China's target of net zero emissions by 2060 shows important leadership and underlines the global consensus, she added.

The IMF has revised up the growth forecast for China to 8.4 percent in 2021, mainly due to stronger net exports. It predicted that through 2026, on average, China is expected to contribute more than one-quarter to global growth.

Its global growth forecast has been lifted to 6 percent in 2021 and 4.4 percent in 2022, a brighter outlook thanks to the improved employment, administrated vaccines and continued policy support.

Without exceptional policy measures adopted globally, the economic contraction would have been three times worse in 2020. More resilient banking systems, in the meantime, have helped to prevent another global financial crisis, according to IMF's analysis.

The IMF chief called policymakers to adopt income supportive measures for workers and labor market policies, while implementing effective bankruptcy and restructuring frameworks to limit insolvency scars.

"We see a renewed support for multilateral efforts: from vaccines, climate action, to modernizing international corporate taxation," said Georgieva, adding that further actions are needed to support the most vulnerable countries, in their efforts to mobilize domestic revenue, including more concessional financing and help to deal with their debt issues.

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