Building a post pandemic world more inclusive and resilient
Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), reviews the global economic situation in this speech, sharing the priorities to be considered in the path to recovery. The aim is to build a more inclusive and resilient post-pandemic world, a topic that also will have a central place on the agenda of the IMF's annual virtual meetings scheduled for this October.
Kristalina Georgieva offers in a positive mood a realistic message of current economic situation and the priorities to overcome the crisis:
- "The global economy is coming back from the depths of the crisis. But this calamity is far from over": The IMF have slightly improved its estimates of global economic contraction in 2020 as second and third quarter activity has been better than expected.
- “The recovery will be partial and uneven in 2021”: Inequality in the recovery has to do with the extraordinary measures that governments and Central Banks have carried out (about $12 trillion in fiscal support to households and companies) to halt the fall of the world economy.
Effectiveness of measures has been uneven by country, due to the different nature and intensity, which have been conditioned by the starting “response capacity” of the countries: “In advanced economies it is about doing everything necessary. The poorest countries strive to do everything possible”.
- The recovery path will be long, full of uncertainty and subject to high risks, considering that many countries have become more vulnerable. This crisis will also mean a setback to the improvement of living standards in many countries, widening inequality.
- The path to recovery should contain the following priorities:
- To defend people's health
- To avoid premature withdrawal of support policies
- To adopt a flexible and forward-leaning fiscal policy
- To deal with debt
- To invest in a more resilient economy: “one that is greener, smarter, more inclusive—more dynamic."