Recovery Underway After Worst Recession since World War II: IMF Chief.

Recovery Underway After Worst Global Recession since World War II: IMF Chief
Washington:

A day after the International Monetary Fund forecast a global growth of six per cent for this year, IMF Managing Director Kristalina Georgieva has said that after the worst global recession since the Second World War, the recovery is underway.

The outlook, she asserted, is brighter because millions of people are benefitting from vaccinations and because of further policy support, especially in the US.

Ms Georgieva said this is adding to the exceptional and coordinated actions taken over the past year.

"Without them, without those fiscal and monetary measures, the global contraction last year would have been three times worse. This could have been another Great Depression," she noted.

"We have a good news that there is light at the end of the tunnel. After the worst global recession since the Second World War, the recovery is underway. As you know, yesterday we lifted our global growth forecast to 6 per cent for this year, 4.4 per cent for 2022," Georgieva told reporters at the start of the annual Spring Meeting of the IMF and the World Bank on Wednesday.

Yet, while there is light, the crisis continues to cast a dark shadow. Economic fortunes are diverging dangerously. A small number of advanced and emerging market economies, led by the US and China, are powering ahead. Weaker and poorer countries are falling behind in this multi speed recovery, she rued.

"We also face extremely high uncertainty, especially over the impact of new virus strains and potential shifts in financial conditions. And, there is the risk of further economic scarring from job losses, learning losses, bankruptcies, extreme poverty, hunger. Policymakers must take the right actions now by giving everyone a fair shot - not just into people''s arms, but also in people''s lives and in vulnerable," the IMF MD said.

The Global Policy Agenda released by the IMF, she said, focusses on three things: a fair shot at the vaccine, a fair shot at recovery and a fair shot at the future.

"This is perhaps the most consequential decision that any government can make this year. The focus should be on scaling up public investment in green projects and digital infrastructure, in people''s health and education, to ensure that everyone can benefit from the historic transformation to greener, smarter, more inclusive economies," she argued.

"To unlock this potential, countries will need sufficient public revenues, and they would need more efficient spending. In many cases, this will mean more progressive taxation and an agreement on questions like minimum taxation for companies and international tax rights. This has to be coupled with stronger support for poorer countries as they fight the crisis and seek to invest in the future," Georgieva said.

She said the IMF will propose a new Special Drawing Rights (SDR) allocation of USD 650 billion.

"This will help address the long term global need for reserve assets and provide substantial liquidity boost to all our members, especially the most vulnerable. What this crisis has shown us is just how inescapable our shared destiny is. Now, we must build on this broader sense of common responsibility to foster a fair recovery and a resilient post pandemic world," she said.

Responding to a question, Georgieva said after the global financial crisis, the most important lesson the world learned was that we needed to boost the resilience of the banking system.

"And we did it. After this crisis, our understanding of the importance to work together to build resilience to future shocks is definitely much more profound, and it is that concentration within communities, countries, and internationally, on building resilience of people, investing in education, health, social protection, building the resilience of our planet," she said.

Georgieva said many of us were worried that the pandemic would push aside concerns about this other crisis, the climate crisis.

"That did not happen. On the contrary, we are much more understanding of this interdependence and also our dependence on nature," she added.

"A more comprehensive resilience of the economy even going back to the global financial crisis, now we recognise that we worked on the banking system but not on the non-banking financial institutions, and we are seeing that we have to expand this resilience building more broadly towards them as well," she said.

Georgieva said that she thinks this is a change we all have to integrate in our thinking, and hopefully it would help us to be much more proactive as a world community, as countries, as businesses and families, towards this more resilient world.

"It is not by chance that we all recognise that digitalization, climate resilience, the transition to the new climate economy, more attention to equality, these are lessons we are taking with us," she said.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

NDTV News

NDTV.com provides latest news from India and the world. Get today’s news headlines from Business, Technology, Bollywood, Cricket, videos, photos, live news coverage and exclusive breaking news from India.

https://www.ndtv.com/

Related news

Biggest Volcano Explosion Yet Hits Tiny Caribbean Island.

Hot flows of ash, rock fragments and gas tore down the flanks of the La Soufriere volcano on the tiny Caribbean island of Saint Vincent on Monday after its most powerful explosion yet, four days after...

NDTV News

Sky News Breakfast: Nation mourns Prince Philip and England’s pubs and restaurants prepare to reopen.

Sky News Breakfast: Nation mourns Prince Philip and England’s pubs and restaurants prepare to reopen.

On Sky News breakfast this morning, the Archbishop of Canterbury prepares to hold a Remembrance Service as Prince Charles thanks the public for its support and pays tribute to his late father, the Duke of Edinburgh. Sky's Gilian Joseph also speaks...

Chinese musical whitewashes human-rights abuse in Xinjiang - DW News.

Chinese musical whitewashes human-rights abuse in Xinjiang - DW News.

China's state-sponsored musical "Wings of Songs" defends government policies in Xinjiang province. The film tells the story of a Uighur, a Kazakh and a Han Chinese man who come together to fulfill their musical dream. The movie showcases the life ...

2 16

BAFTA praised for diverse set of nominees

BAFTA praised for diverse set of nominees

BAFTA has been praised for the diversity of this year's list of nominees which includes a record number of female and non-white people in line for awards. Four women have been nominated for Best Director and 16 of the 24 acting nominees this year ...

COVID-19: Shops and pubs prepare to reopen

COVID-19: Shops and pubs prepare to reopen

Retailers across England hope pent-up demand will bring people back to the shops after a year of restrictions and closures. Sky News videos are now available in Spanish here/Los video de Sky News están disponibles en español aquí SUBSCRIBE to our ...

Mozambique: How a massacre unfolded

Mozambique: How a massacre unfolded

More than two weeks on from the terror attack in the town of Palma in Mozambique, around 20-thousand people remain unaccounted for. The country's authorities have sent hundreds of soldiers into the town and have declared it free of terrorists, but...

1

41 gun salutes held across the UK to mark the death of Prince Phillip.

41 gun salutes held across the UK to mark the death of Prince Phillip.

GUN salutes took place across the UK to mark the death of the Duke of Edinburgh. The Tower of London and Royal navy warships led the 41 gun salutes on Saturday, April, 10, 2021. In a statement on the royal website, it was said: "The tradition of G...