The HEAD of the IMF has called for stronger international cooperation to tackle three major obstacles to global economic recovery

2022-05-09 0 By

Washington, Feb. 4 (Xinhua) — International Monetary Fund (IMF) Managing Director Kristina Georgieva on Wednesday called on policymakers to strengthen international cooperation and enhance policy flexibility to jointly tackle three major obstacles to global economic recovery.Georgieva said in an online press conference that the global economy continues to recover, but the momentum of recovery has slowed down, facing three major obstacles: the continuation of COVID-19, rising inflation and high debt.She said the policy response should be tailored to each country’s specific situation and be more flexible, given the wide differences in inflation, debt levels and policy space among different countries, but fighting the epidemic and increasing vaccination rates remain a global priority.Georgieva noted that inflation has become a bigger economic and social concern in many countries than it was a few months ago.It remains to be seen how long inflation will last, driven by supply chain disruptions, strong consumer demand for goods and higher food prices.She said some central banks had signaled they would withdraw monetary support and needed to strike a careful balance between fighting inflation and sustaining the economic recovery.Ms Georgieva warned that tighter monetary policy by central banks in advanced economies would have policy spillovers on emerging markets and developing countries, particularly those with high debt levels, particularly worrying given that about 60 per cent of the world’s low-income countries are already in debt trouble.In response to the Xinhua News Agency reporters’ questions, georgi says that China has the fiscal and monetary policy space to support economic growth, China has now taken some policies and measures to provide necessary support to economic growth, it is not only good for China itself, considering China’s importance in the global economy, but also to the global economic recovery.In addition, as the COVID-19 situation changes, it is also important for China to carefully evaluate and adjust its epidemic prevention and control measures and enhance its response capacity.Georgieva said the biggest lesson she learned from COVID-19 was the interdependence of the global economy and the need to ensure supply chains are not disrupted to better support the global economic recovery, which also highlights the importance of strengthening international cooperation and policy coordination.She noted that at the beginning of the COVID-19 outbreak, the IMF predicted that the global economy could shrink by as much as 10 percent, but in the end, the global economy actually contracted by 3.1 percent in 2020, thanks to the coordinated response of fiscal and monetary policies around the world at the beginning of the outbreak. The IMF also provided a platform for global policy coordination, which led to a rapid rebound in global trade.The view that economic globalization will be reversed in the post-pandemic era is “a bit overly pessimistic,” she said.Last week, the IMF released an update to its World Economic Outlook, predicting that the global economy will grow 4.4 percent in 2022, down 0.5 percentage points from its forecast in October last year.Source: Xinhua Finance (reporter Gao Pan Hu Yousong) read: Tan Lugang