International Monetary Fund (IMF) Director-General Kristalina Georgieva today warned of the possibility of making a “big difference” in 2021, following the “great imprisonment” of 2020, including the European Union (EU).
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 so deep that half of the countries that are generally used to accelerate income levels are now lagging behind in terms of wealth, but this is also a danger to the EU,” the Bulgarian official said in a video conference speech in Washington.
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 because of the current race between the virus and the vaccine. It is unbalanced due to differences in start-ups, economic structures and responsiveness – leading to growing inequality within and within countries,” 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 points out that by the end of 2022 there will be “income” Individual Emerging markets in Central and Eastern Europe will be 3.8% below pre-crisis forecasts, compared to the 1.3% decline in advanced EU economies – the negative impact will almost triple, which will slow pace integration, ”Georgieva said.
Within countries, the Director-General of the International Monetary Fund notes that “the gap will widen” with regions with GDP [Produto Interno Bruto] With less productivity, bigger fields of communication and fewer jobs that allow long-distance work, there is less risk of entering the crisis, ”he said, adding that“ women and youth are more vulnerable, especially those with lower incomes and savings ”.
Thus, the head of the Washington-based company listed three fundamental issues facing policymakers: the health crisis, the economic crisis, and digitalization and structural changes for the environment.
“Until we defeat the epidemic everywhere, we risk new mutations that threaten our progress,” Kristalina Giorgio 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”, which is a country with “domestic interests”, but “on the basis of epidemics”, premature withdrawal may “widen the gap between countries”.
Regarding digitalization and ecology, Georgia said there was a need for a concerted ‘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 capital and corporate tax imbalances in the EU.