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IMF warns of economic recovery threatened by virus, inflation | WGN Radio 720

Activists with cardboard cutouts from President Joe Biden, Prime Minister Justin Trudeau of Canada, Prime Minister Scott Morrison of Australia, Prime Minister Boris Johnson of the United Kingdom, and Prime Minister Mario Draghi of Italy are outside the International Monetary Fund headquarters. , Washington, Wednesday, October 13, 2021. (AP Photo / Jose Luis Magana)

Washington (AP) —The International Monetary Fund warns of an increasing threat to the recovery of the global economy caused by an ongoing coronavirus pandemic and inflation.

Lenders called for greater efforts from wealthy countries to increase coronavirus vaccination rates in poorer countries on Thursday, while at the same time the Federal Reserve and others if current inflationary pressures prove to be non-temporary. Called on the central bank to respond promptly.

The IMF Committee, which has set the policy for organizations in 190 countries, concludes the annual meeting with a joint statement expressing concern about the large differences in immunization rates between rich and poor countries.

The group has encouraged further efforts by wealthy countries to reach the goal of vaccination of 40% of the country’s population by the end of this year and 70% by the middle of next year.

Currently, nearly 60% of the population of developed countries is fully vaccinated, but only about 4% of the population of poor countries is vaccinated.

“We will take steps to promote the supply of vaccines and essential medical products and inputs in developing countries and to remove the associated supply and financing constraints,” the finance authorities pledged.

“The emergence of viral variants increases uncertainty and the risk of recovery is negative,” the group said. “The crisis exacerbates poverty and inequality.”

In the United States, Treasury Secretary Janet Yellen and Federal Reserve Chairman Jerome Powell attended the Treasury Conference.

Monetary officials also noted rising global inflationary pressures and said the Fed and other central banks need to “act appropriately” if inflation turns out to be a threat to economic recovery. Stated.

The Federal Reserve Board last month suggested that it could soon begin the process of unleashing some of the extraordinary support it provided in response to last year’s coronavirus recession. This move will be the first step towards raising interest rates, which could slow growth and keep inflation under control.

This week, the IMF released its latest economic forecast, which slightly lowered its global economic growth forecast from 6% in July to 5.9%. Downgrades reflect persistent supply chain disruptions and wide disparities in vaccination rates. In the United States, the IMF forecasts 6% growth from the 7% forecast in July this year.

The IMF’s Policy Board also approved on Monday the results of an institution’s board of directors’ investigation into “full confidence” in the IMF’s managing director, Cristalina Georgieva. Support for Georgieva is the World Bank’s chief executive, while she and other World Bank officials are asked to raise the rankings of China and other countries in the subsequently discontinued influential business climate survey. I came after an investigation into allegations of pressure on staff.

Georgieva told reporters Wednesday that the review showed that the accusation was not “there.” However, in a speech to the IMF Policy Board on Thursday, Jellen said the results of a review by an outside law firm were “strong actions to increase accountability, protect data integrity and prevent fraud. Without it, it could reduce confidence in international financial institutions. “

Critics cited the case in support of their claim that China and other countries are trying to exert inappropriate influence over the IMF, the World Bank and other international financial institutions.

Yellen said the IMF and other organizations need to find ways to strengthen the rights of whistleblowers.

“The United States closely monitors developments and evaluates new facts and discoveries as they become available,” said Yellen.

The poverty alleviation group on Thursday expressed disappointment that the IMF was less specific about its plans to raise vaccination rates and increase resources to combat climate change.

“Given how pandemics are deteriorating in most countries of the world, we are concerned about the lack of action at conferences on vaccine distribution, debt relief, and general pandemic response,” said Religious Development. Eric Le Compte, Managing Director of Group Jubilee, said. USA Network said in a statement.

“It’s embarrassing that we don’t yet have plans to fund and distribute vaccines to all developing countries,” said Le Compte.

IMF warns of economic recovery threatened by virus, inflation | WGN Radio 720

Source link IMF warns of economic recovery threatened by virus, inflation | WGN Radio 720

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