IMF chief urges G20 leaders to maintain political support as the global economy ‘is not out of danger’

International Monetary Fund (IMF) CEO Kristalina Georgieva on Sunday urged the leaders of the Group of 20 (G20) to maintain political support and strengthen the economic bridge to recovery as the global economy “is not out of danger”.

“I commended the G20 countries as a whole for taking unprecedented action to mitigate the impact of COVID19 – including fiscal and monetary measures – which helped prevent massive bankruptcies and an even deeper crisis,” Georgieva said in a statement following a virtual G20 leaders summit meeting hosted by Saudi Arabia.

“I also stressed that the world is not yet out of danger in terms of this crisis. Cooperation will be even more important in the future,” said Georgieva, urging G20 leaders to maintain macroeconomic policy support for business and workers. ” until we get out of the health crisis “.

“There must be no premature withdrawal. Now is also the time to prepare for a synchronized push on investments in green and digital infrastructure to reinvigorate growth, limit scarring and address climate goals,” he said.

With vaccines on the horizon, Georgieva noted that “we need to make sure they reach everyone, everywhere,” which could add nearly $ 9 trillion to global income by 2025, according to IMF estimates.

The IMF chief also said that the most important uncertainty we face today is “how we can use the disruption momentum caused by this crisis to build a better economy for all”.

Georgieva called on G20 leaders to revitalize the international trading system, promote an international tax system where everyone pays their fair share, and accelerate the transition to the new climate economy.

“The IMF will continue to count on the support of the G20 to have all the resources it needs to better serve our member countries, and especially those who need our assistance most,” he said.

In its World Economic Outlook report released last month, the IMF revised its forecast for 2020 for the global economy upward to a contraction of 4.4%. Despite the upward revision, the IMF said the exit from this crisis is likely to be “long, erratic and highly uncertain”.