Supporting global recovery post-COVID 'a joint task we need to tackle': IMF chief

At a time the new COVID-19 strain, Omicron, has expanded to over 40 nations around the world, managing director of the International Monetary Fund (IMF), Kristalina Georgieva, urged on Monday for global collaboration to contain the COVID-19 outbreak and assist economic recovery.

Following the sixth 1+6 Roundtable, which was virtually convened by Chinese officials, Georgieva said, “Urgent policy action is needed to control the pandemic, limit scarring, and transform the global economy," the IMF informed in a press release.  

Georgieva went on to say that the world economy has persisted to retrieve but cautioned that there are many risks ahead, which include the pandemic's uncertain trail amidst the emergence of the new strain and the perspective on inflation. It is worth noting that vaccinating the world, calibrating strategies to the pandemic and economic changes, and accelerating reforms to establish inclusive and sustainable economies are among the policy goals of IMF. 

IMF chief lists 4 areas for global collaboration 

Georgieva highlighted four areas where global collaboration is essential. Firstly, she said, immediate action is required to meet the IMF's pandemic proposal of vaccinating 40% of the population in each nation by the end of this year and 70% by mid-2022.

Secondly, Georgieva said that nations must work together to minimise trade tensions and enhance the multilateral trading system, which is critical for economic development and job creation. 

Thirdly, the IMF managing director noted that more commitment is required to speed the transformation to net-zero carbon emissions and to assist climate adaptation efforts by utilising all available policy tools.

Finally, she stated that many emerging economies will require assistance from the international community in order to recover since their budgetary space is narrowing and their debt loads are growing.

“Supporting the global recovery will be a joint task that we need to tackle together," Georgieva said at the virtual meet.  

IMF chief concerned about 'loss of momentum' of global economy

Earlier, on December 3, Georgieva had said that the IMF's perspective on the world economy is anticipated to be reinforced by the 'highly mutated' Omicron COVID strain. Georgieva highlighted that the IMF was concerned about the "loss of momentum" of the global economy as a result of COVID and newly developing variants. 

During a live conversation on the global economy, the IMF head had predicted "some downgrades" in global growth estimates for October. In October, the financial organisation expected that economies would restore pre-pandemic aggregate inputs the following year. It also predicted that global economies will outperform their respective averages by 0.9% by 2024. 

(Image: AP/ PTI/ Pixabay)