IMF advice to save the world economy from Corona

The vaccination of large numbers of people against Covid-19 seems to be the only hope of saving the global economy, according to IMF Managing Director Kristalina Georgieva, which will increase global economic growth by 9$ trillion by 2025.

The IMF director called for increased participation of private creditors and China in debt relief for poor countries, saying it was a key factor for success and a possible framework for debt restructuring. Besides, an IMF spokesman said the total  of debts had recently risen from 43 countries when heavily indebted Mozambique signed the program, which suspends official bilateral debt payments until June 2021. “What we have seen, unfortunately, is that the private sector has been disorganized, and that the countries themselves have avoided asking (debt relief) from the private sector because of concerns that this may reduce their ability to access the market in the future,” said Georgieva.

The World Bank has made it clear that it intends to send a signal to the research and pharmaceutical industries. Citizens of developing countries should also have access to safe and effective Covid-19 vaccines.

World Bank President David Malpas was quoted as saying that access to safe and effective vaccines and enhanced distribution systems is necessary to change the course of the pandemic and help countries facing catastrophic economic and financial impacts. The International Monetary Fund (IMF) said the world is winning over the repercussions of the Corona crisis with support and cooperation, and the IMF has improved its forecast for the contraction of the global economy this year, to be less severe than it had expected in June.

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