IMF chief urges G20 to take bold action to end pandemic, secure global recovery

WASHINGTON, Oct. 27 (Xinhua) -- Kristalina Georgieva, managing director of the International Monetary Fund (IMF), on Wednesday urged the Group of 20 (G20) economies to take bold action to end the COVID-19 pandemic and secure the global economic recovery.

"The IMF recently reduced its global growth forecast to 5.9 percent for this year. The outlook is highly uncertain, and downside risks dominate," Georgieva said in a blog, adding the global recovery is held back especially by new virus variants and the economic impact, as well as supply-chain disruptions.

"The pandemic remains the biggest risk to economic health, and its impact is made worse by unequal access to vaccines and large disparities in fiscal firepower," Georgieva said, noting that too many developing countries are desperately short of both vaccines and resources to support their recoveries.

Some 75 nations, mostly in Africa, are not on track to meet the 2021 target set by the IMF and other international institutions to vaccinate at least 40 percent of people in their countries by the end of this year, she said.

To get these countries on track, the G20 should provide about 20 billion U.S. dollars more in grant funding for testing, treatment, medical supplies, and vaccines, so as to close a vital financing gap, Georgieva said.

The IMF chief called for immediate actions to boost vaccine supply in the developing world.

"While G20 countries have promised more than 1.3 billion doses to COVAX, fewer than 170 million have been delivered. Thus, it is critical that countries deliver on their pledges immediately," Georgieva said.

If COVID-19 were to have a prolonged impact, it could reduce global gross domestic product (GDP) by a cumulative 5.3 trillion dollars over the next five years, relative to the current projection, she warned.

"We must take these and other measures to save lives and strengthen the recovery," Georgieva said.

The IMF chief also urged G20 economies to help developing countries cope financially and commit to a comprehensive package to reach net-zero carbon emissions by mid-century.

"As we strive to reach net-zero emissions, we can boost prosperity -- but only if we act together and help ensure a transition that benefits all," she said.

Georgieva's comments came as G20 leaders are expected to discuss climate change, health, and the global economic recovery during an upcoming summit this weekend.