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The outlook for the global economy remains highly uncertain

The outlook for the global economy remains highly uncertain due to the new coronavirus pandemic.

The outlook for the global economy remains highly uncertain
Yazar: Tom Roberts

Yayınlanma: 19 Ocak 2021 19:16

Güncellenme: 25 Mart 2024 10:08

The outlook for the global economy remains highly uncertain

The outlook for the global economy remains highly uncertain due to the new coronavirus pandemic. International Monetary Fund (IMF) chief Kristalina Georgieva said on Monday that the widening gap between rich and poor countries required the IMF to find more resources. Georgiev told reporters at an online press conference that the new redistribution of Special Drawing Rights (SDRs) would give countries more fiscal space to address the health crisis and accelerate the transition to a digital and green economy. The United States, the IMF's largest shareholder, blocked the move under outgoing President Donald Trump, arguing that it would provide more resources to richer countries, as the allocation of SDR resources would be commensurate with their share. Swedish Finance Minister Magdalena Andersson, the new chair of the IMF's steering committee, who also spoke at an online press conference, said the need for liquidity remained high. It will thus consult with the member countries on the possibilities of its extension. Georgieva said the IMF had rapidly increased concessional financing for emerging economies, including through SDRs. According to her, IMF members have never abolished the possibility of making a new SDR allocation - something like the central bank's pushing of money. She added that some members continued to discuss it as a possible step.
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