In its annual report published Monday in Washington, the International Monetary Fund (IMF) indicates that “recoveries are underway” to varying degrees depending on the country, but the economic fallout of the Covid-19 pandemic will be felt “for years”. can be done” especially for developing countries.
“Nearly half of emerging and developing countries, as well as some middle-income countries, are now at risk of falling behind others, which reverses the progress made in achieving the development goals. Sustainable as defined by the United Nations”, says the IMF .
Within countries, inequalities are also increasing, with low-skilled workers, young people, women and workers in the informal economy facing “disproportionate losses”.
Globally, the recovery occurs at two speeds, warns IMF managing director, Kristalina Georgieva, who notes that “economic conditions are dangerous from country to country” because of the apparent difference in terms of “access to vaccines”. substantially different”. and exemptions available to public officials.
“While a rebound has been observed in advanced countries, the crisis is worsening in many emerging and developing countries,” she wrote in the report’s preface.
For the recovery to be sustainable, “public authorities must continue their action, particularly to guarantee and expand access to vaccines and to maintain economic support mechanisms and targeted support adapted to the phase of the pandemic, economic strength.” For recovery and structural features of countries ”recommends the financial institution.
and advocating for multilateral cooperation to ensure that all countries have equal access to vaccines and that those with financial hardship can get the international liquidity they need.
“As recovery picks up, there is a need to intensify public investment in human capital and green and digital infrastructure, along with economic reforms to promote redistribution of resources and mitigate long-term consequences.”, IMF emphasizes.
The managing director of the IMF recalls that the total amount of loans given by the IMF to 86 countries since the start of the pandemic was $110 billion, a record.
He also referred to the new allocation of Special Drawing Rights (SDRs), amounting to $650 billion, the highest in the history of the IMF, which would significantly increase the reserves and liquidity of countries.
“The most urgent thing to do is to vaccinate the world’s population as soon as possible,” she stressed on ending the pandemic and ensuring a sustainable recovery everywhere.
The second immediate priority, he said, is to help countries cope with the growing burden of their public debt.
“We need to take measures that support a short-term recovery, but also policies that drive change that allow us to lay the foundation for a more environmentally friendly, more digital and more inclusive global economy,” he said. .
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