The Director General of the International Monetary Fund warns of a ‘big difference’ in 2021

The Director General of the International Monetary Fund warns of a 'big difference' in 2021

In a speech on the sidelines of the European Parliament Week organized jointly by the European Parliament and the Republican legislature, within the parliamentary dimension of the EU Council (EU) Portuguese President, Kristalina Georgieva acknowledged that the “biggest concern” for 2021 is that “2020 will be a ‘big prison’ in 2021”. The big difference is ‘becoming’.

“The difference in developing countries is very deep, where half the countries that accelerated the level of income to the level of the rich’s peers are now lagging behind. But this is also a danger to the EU,” the Bulgarian official said in a speech via Washington via video conference.

Although the International Monetary Fund has forecast a global economic recovery of 5.5% and 4.2% for the EU, “the path to recovery is very uncertain and, most importantly, unbalanced,” said Kristalina Georgieva.

“This is uncertain due to the current race between the virus and the vaccine. It is unbalanced due to differences in start-ups, economic structures and responsiveness – increasing inequalities between countries and within,” said the economist in charge of the International Monetary Fund.

For example, the Director-General stressed that “traditional tourist sites experienced the most severe contractions – more than 9% in Spain, Greece and Italy – compared to an average of 6.4% contraction in the EU”.

In addition, the International Monetary Fund (IMF) said that by the end of 2022, “per capita income of emerging markets in Central and Eastern Europe will be 3.8% higher than pre-crisis projections. Will reduce, “said Georgieva.

Within countries, the Director-General of the International Monetary Fund notes that “the gap will widen” with regions in GDP. [Produto Interno Bruto] Low productivity, large fields of communication and fewer jobs that allow long-distance work are less likely to “enter the crisis with an impact on millions of people,” women and young people being more vulnerable, especially those with lower incomes and savings.

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Thus, the head of the Washington-based company listed three types of fundamental issues facing policymakers: the health crisis, the economic crisis, and structural changes for digitalization and the environment.

“Until we defeat the epidemic everywhere, we risk new mutations that threaten our progress,” Kristalina Georgieva said of health, “therefore increasing the production and distribution of vaccines is very important.”

On the economic crisis, the official who has already welcomed the response of European institutions, especially the European Central Bank (ECP), said that support for families and institutions should continue “until the epidemic is overcome”.

“Gradual withdrawal should follow a prolonged expulsion from the health crisis, not earlier”, not only for “domestically interested” countries, but “in terms of epidemics”, as early withdrawal may “widen the gap between countries”.

On digitalization and ecology, Georgia said there was a need for a combined ‘drive’ to invest in “green” infrastructure, with the International Monetary Fund aiming for an annual increase of 0.7% in world GDP over 15 years.

He addressed the need to tax carbon dioxide emissions, improve “high-speed Internet access in rural and underdeveloped areas”, invest in education and vocational training, and end banking and financial markets. “Suitable for the digital age” to reduce inequality.

Also Read: International Monetary Fund Reduces High Inflation Risk with Biden’s Stimulus Plan

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