The IMF chief has called for a coordinated response to three major obstacles to global economic recovery

2022-06-16 0 By

Washington, February 3 (Xinhua) — Gao Pan Hu YousongInternational Monetary Fund (IMF) Managing Director Kristina Georgieva on Wednesday called for more coordination and policy flexibility to tackle three major obstacles to global economic recovery.Georgieva said at an online press conference on the day that the global economic recovery is slowing down, facing three major obstacles: the continuation of the COVID-19 pandemic, rising inflation and high debt.Given the wide differences in inflation, debt levels and policy space among different countries, countries should adjust their policies according to specific circumstances and enhance policy flexibility, she said.She stressed that 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 sustained the rise in inflation will be, driven by supply chain disruptions, strong consumer demand for goods and higher food prices.Some central banks have signaled they will exit easy monetary policies and need to strike a careful balance between fighting inflation and sustaining economic recovery, she said.Ms Georgieva warned that tighter monetary policy by central banks in advanced economies would have spillover effects on emerging markets and developing economies, with those with higher debt levels suffering more.When answering questions from Xinhua News Agency, Georgieva said that China’s fiscal and monetary policy space can support economic growth, and China has taken some policy measures to provide necessary support for economic growth, which is not only beneficial to China itself, but also conducive to global economic recovery.Georgieva said the COVID-19 pandemic highlights the interdependence of countries’ economies and the importance of strengthening international cooperation and policy coordination.She said the view that economic globalization will be reversed in the post-pandemic era is “overly pessimistic.”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.Editor: Wang Yuxuan