International Monetary Fund’s Managing Director Kristalina Georgieva said late Tuesday that the global recovery projections the body made are only “partial and uneven”.
At a video conference, Georgieva made some evaluations regarding the world economy in the era of COVID-19 and beyond.
“We are seeing some signs of recovery in the world economy,” she said, noting the outlook for a number of advanced economies is not as bad expected.
On the other hand, she warned, the majority of emerging markets and developing countries – excluding China – are not seeing a reversal of fortunes yet.
“In fact, some would see a downgrade in our projections,” she said.
She noted small countries with tourism-dependent economies are on their knees.
She added economies with high debt levels are in terrible trouble.
Regarding the IMF’s priorities amid the pandemic, she said: “We maintain support until we see the economy turn around. We are at a point when we can say that the world economy will lose $12 trillion this year and next year.”
She reiterated that some countries will need restructuring to bring debt down to a sustainable level.
“I call for debt transparency as a priority. If we know debt levels, then this issue is much easier to handle,” she said.
She said this crisis is telling the world to build resilience for the future that means investing in education, digital capacity and human capital, health systems and social protection systems.
“To do this, we have to take care of taxation in a way that transforms and builds resilience for the future,” she concluded.
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