Thousands took to the streets of Argentina's capital Buenos Aires against the government's debt deal with the International Monetary Fund. Demonstrators denounced the agreement reached between president Alberto Fernandez and the IMF on the repayment of a 44.5 billion dollar loan.

Argentina: Massive protests in Buenos Aires against govt deal with IMF to repay a loan taken in 2018

Uncertainty over whether south American country Argentina will pay back debt is looming as the country is facing deadline for nearly 1.1 billion dollar intent repayment to IMF.

Argentina faces $1.1 billion debt deadline

The omicron variant of covid-19 is slowing down the global economy. Now, the International Monetary Fund has cut its world GDP forecast for the year 2022 to 4.4 percent. The Washington based crisis lender says that the variant will slow growth this year notably in the world's two largest economies.

IMF slashes global growth estimate, high inflation due to Russia-Ukraine conflict, Omicron and more

The International Monetary Fund (IMF) has slashed its growth prediction for 2022, citing higher-than-expected inflation and the Omicron variant&nbsp;as reasons for the downgrade.

In a quarterly update on predictions released in October 2021, the IMF predicted that growth would be 4.4 percent this year, down 0.5 percentage points from last year, with the possibility of a worse performance.

The downgrading was blamed on mounting cost pressures and the rapid spread of Omicron, according to the Washington-based organisation, which added that while the forecast for the world's two largest economies – the US and China—was considerably worse in 2022, few countries would be spared a downturn.&nbsp;

The UK is predicted to increase by 4.7 per cent in 2022, down 0.3 percentage points from the IMF's October 2021 World Economic Outlook prediction.

Despite the cut, the IMF predicts that the UK will expand faster this year than the other six G7 industrial nations — the United States, Japan, Germany, France, Italy, and Canada.&nbsp;

The United States, the world's largest economy, saw its estimate slashed due to concerns over President Joe Biden's spending agenda, while China, the world's second-largest economy, faced real estate issues.

According to the IMF, the global economy grew 5.9% last year, the greatest in four decades of detailed statistics.

This followed a 3.1 percent drop in 2020, the largest drop in broader data since the Great Depression.

(With inputs from agencies)

The International Monetary Fund (IMF) has slashed its growth prediction for 2022, citing higher-than-expected inflation and the Omicron variant as reasons for the downgrade.

The International Monetary Fund (IMF) has slashed its growth prediction for 2022, citing higher-than-expected inflation and the Omicron variant as reasons for the downgrade. In a quarterly update on predictions released in October 2021, the IMF predicted that growth would be 4.4 percent this year, down 0.5 percentage points from last year, with the possibility of a worse performance. The downgrading was blamed on mounting cost pressures and the rapid spread of Omicron, according to the Washington-based organisation, which added that while the forecast for the world's two largest economies – the US and China—was considerably worse in 2022, few countries would be spared a downturn. The UK is predicted to increase by 4.7 per cent in 2022, down 0.3 percentage points from the IMF's October 2021 World Economic Outlook prediction. Despite the cut, the IMF predicts that the UK will expand faster this year than the other six G7 industrial nations — the United States, Japan, Germany, France, Italy, and Canada. The United States, the world's largest economy, saw its estimate slashed due to concerns over President Joe Biden's spending agenda, while China, the world's second-largest economy, faced real estate issues. According to the IMF, the global economy grew 5.9% last year, the greatest in four decades of detailed statistics. This followed a 3.1 percent drop in 2020, the largest drop in broader data since the Great Depression. (With inputs from agencies)

IMF cuts 2022 economic growth outlook amid inflation

The Imran Khan government has finalized the preparations to pass a new budget amid massive criticism from the opposition in the country. Islamabad is now seeking to hike widespread taxes in various sectors, this is to fulfill the demands of the IMF.

Imran Khan govt to pass a new mini budget, opposition lashes says it isn't people-friendly

Lockdown imposed in parts of Karachi as 1,085 new COVID-19 cases in last 24 hours amid Omicron spread.

Pakistan: 1,085 new COVID-19 cases in last 24 hours amid Omicron spread

In response to the COVID-19 pandemic, the International Monetary Fund on Thursday said it would extend its flexible access to emergency funding for an additional 18 months.

The Washington-based crisis lender said in a statement that its executive board agreed on Monday to raise its "cumulative access limits" under emergency financing instruments through June 2023.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/imf-chief-says-omicron-could-dent-global-economic-growth-434001">IMF chief says Omicron could dent global economic growth</a>

As the world faced the first wave of Coronavirus infections and deaths in April 2020, the IMF made such aid more easily accessible, including by increasing the amount of funding available to countries.

The programs have already been extended twice, once in September 2020 and once last March.

Moreover, the board decided that "all other access limits" which had been temporarily increased will return to their pre-pandemic levels on January 1, 2022, as originally scheduled.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/china-urges-imf-to-help-afghanistan-amid-rising-poverty-424826">China urges IMF to help Afghanistan amid rising poverty</a>

"This decision reflects the expected and ongoing gradual shift to upper-credit-tranche quality arrangements from emergency financing triggered by urgent, pandemic-related balance of payment needs," the IMF said.

In addition, the statement noted that the decision guarantees member countries access to IMF emergency financing should the urgent balance of payment issues arises.

One of the tools is the Rapid Credit Facility, a program that offers free loans to low-income countries, as well as the Rapid Financing Instrument, which is available to all members of the Fund.

Watch |&nbsp;‘They can go take a walk’: IMF closes its Brazil office after criticism

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In an emergency, member states can use these grants to implement policies as quickly as possible.

As part of a program designed to assist the world's poorest nations in weathering the economic crisis, the IMF approved the fifth and final round of debt relief on Monday.

(With inputs from agencies)

In response to the COVID-19 pandemic, the International Monetary Fund on Thursday said it would extend its flexible access to emergency funding for an additional 18 months.

In response to the COVID-19 pandemic, the International Monetary Fund on Thursday said it would extend its flexible access to emergency funding for an additional 18 months. The Washington-based crisis lender said in a statement that its executive board agreed on Monday to raise its "cumulative access limits" under emergency financing instruments through June 2023. Also read | IMF chief says Omicron could dent global economic growth As the world faced the first wave of Coronavirus infections and deaths in April 2020, the IMF made such aid more easily accessible, including by increasing the amount of funding available to countries. The programs have already been extended twice, once in September 2020 and once last March. Moreover, the board decided that "all other access limits" which had been temporarily increased will return to their pre-pandemic levels on January 1, 2022, as originally scheduled. Also read | China urges IMF to help Afghanistan amid rising poverty "This decision reflects the expected and ongoing gradual shift to upper-credit-tranche quality arrangements from emergency financing triggered by urgent, pandemic-related balance of payment needs," the IMF said. In addition, the statement noted that the decision guarantees member countries access to IMF emergency financing should the urgent balance of payment issues arises. One of the tools is the Rapid Credit Facility, a program that offers free loans to low-income countries, as well as the Rapid Financing Instrument, which is available to all members of the Fund. Watch | ‘They can go take a walk’: IMF closes its Brazil office after criticism In an emergency, member states can use these grants to implement policies as quickly as possible. As part of a program designed to assist the world's poorest nations in weathering the economic crisis, the IMF approved the fifth and final round of debt relief on Monday. (With inputs from agencies)

IMF extends emergency funding by 18 months to help nations struggling due to coronavirus

After harsh criticism from Brazil's economy Minister, IMF pulls out of the country altogether. IMF had earlier predicted contraction in the economy.

‘They can go take a walk’: IMF closes its Brazil office after criticism

IMF pulls out of Brazil after harsh criticism from Minister over economy contraction predictions

The International Monetary Fund is likely to lower its global economic growth estimates due to the new&nbsp;Omicron&nbsp;variant of the coronavirus, the global lender's chief said at the Reuters Next conference on Friday in another sign of the turmoil unleashed by the ever-changing pandemic.

Omicron&nbsp;has spread rapidly to at least 40 countries since it was first reported in South Africa last week, officials say, and many governments have tightened travel rules to try to keep it out.

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"A new variant that may spread very rapidly can dent confidence, and in that sense, we are likely to see some downgrades of our October projections for global growth," IMF Managing Director Kristalina Georgieva told the conference.

Much remains unknown about&nbsp;Omicron. Researchers said it could have picked up genetic material from another virus, perhaps one that causes the common cold, which would allow it to more easily evade human immune system defences.

Also read |&nbsp;<a href="https://www.wionews.com/world/omicron-variant-highly-transmissible-could-become-dominant-says-whos-top-scientist-433999">Omicron highly transmissible, could become dominant, says WHO's top scientist</a>

Parts of Europe and the United States are grappling with a wave of infections of the more familiar Delta variant. The new strain could further destabilize economies that are still emerging from COVID-19 related lockdowns and disruptions.

A corporate Christmas party in the Norwegian capital Oslo resulted in at least 13 infections, making it the biggest outbreak outside of South Africa, officials said.

The World Health Organization's (WHO) chief scientist Soumya Swaminathan told Reuters Next that the fast-spreading variant would have to become more transmissible to out-compete Delta, which accounts for 99 per cent&nbsp;of current transmissions.

"We need to be prepared and cautious, not panic, because we're in a different situation to a year ago," she said.

Also read |&nbsp;<a href="https://www.wionews.com/world/as-fears-of-new-covid-variant-looms-europe-surpasses-75-million-covid-cases-433994">As fears of new Covid variant looms, Europe surpasses 75 million Covid cases</a>

WHO's emergencies director Mike Ryan said there was no evidence that existing vaccines needed to be modified to fight&nbsp;Omicron. He said officials should work on getting more people inoculated with vaccines currently on the market.

"We need to focus on getting people most at risk vaccinated," Ryan said at a social media event.

However, WHO spokesman Christian Lindmeier told a United Nations briefing in Geneva that vaccine makers should prepare for the likelihood of adjusting their products.

Ugur Sahin, CEO of Germany's BioNTech, which makes a COVID-19 vaccine with Pfizer, told Reuters Next the company should be able to adapt the shots relatively quickly.

Sahin also said current vaccines should continue to provide protection against severe disease, despite mutations.

"I believe in principle at a certain timepoint we will need a new vaccine against this new variant. The question is how urgent it needs to be available," Sahin said.

Worrying gaps in vaccination

Australia became the latest country to report community transmission of the new variant. Officials have found the new strain in 10 US&nbsp;states, adding another challenge to a healthcare system that is already dealing with more COVID-19 illness caused by Delta.

More than 264 million people have been reported to be infected by the coronavirus since it was first detected in central China in late 2019 and 5.49 million people have died, according to a Reuters tally.

Cases in Europe, the pandemic's current epicentre, crossed the 75 million mark on Friday.

Vaccination rates vary from country to country but there are worrying gaps in poorer nations. Indonesia, the world's fourth most populous country and once Asia's COVID-19 epicentre, has fully inoculated only about 35 per cent&nbsp;of its population.

In the United States, fewer than 60 per cent&nbsp;of the population have been fully vaccinated, one of the lowest rates among wealthy nations.

Aside from wreaking havoc in the travel industry, the clampdown has pounded financial markets and undermined major economies just as they were beginning to recover from the lockdowns triggered by Delta.

Germany said it would bar the unvaccinated from all but essential businesses, and legislation to make vaccination mandatory would be drafted for early next year.

Several countries, including Britain and the United States, were bringing forward plans to offer booster shots, but, like travel bans, they are controversial.

Many scientists say the way to stop the virus spreading is to make sure poorer countries have access to vaccines, not to give blanket booster shots to people in richer countries.

The International Monetary Fund is likely to lower its global economic growth estimates due to the new Omicron variant of the coronavirus, the global lender's chief said at the Reuters Next conference on Friday in another sign of the turmoil unleashed by the ever-changing pandemic.

The International Monetary Fund is likely to lower its global economic growth estimates due to the new Omicron variant of the coronavirus, the global lender's chief said at the Reuters Next conference on Friday in another sign of the turmoil unleashed by the ever-changing pandemic. Omicron has spread rapidly to at least 40 countries since it was first reported in South Africa last week, officials say, and many governments have tightened travel rules to try to keep it out. "A new variant that may spread very rapidly can dent confidence, and in that sense, we are likely to see some downgrades of our October projections for global growth," IMF Managing Director Kristalina Georgieva told the conference. Much remains unknown about Omicron. Researchers said it could have picked up genetic material from another virus, perhaps one that causes the common cold, which would allow it to more easily evade human immune system defences. Also read | Omicron highly transmissible, could become dominant, says WHO's top scientist Parts of Europe and the United States are grappling with a wave of infections of the more familiar Delta variant. The new strain could further destabilize economies that are still emerging from COVID-19 related lockdowns and disruptions. A corporate Christmas party in the Norwegian capital Oslo resulted in at least 13 infections, making it the biggest outbreak outside of South Africa, officials said. The World Health Organization's (WHO) chief scientist Soumya Swaminathan told Reuters Next that the fast-spreading variant would have to become more transmissible to out-compete Delta, which accounts for 99 per cent of current transmissions. "We need to be prepared and cautious, not panic, because we're in a different situation to a year ago," she said. Also read | As fears of new Covid variant looms, Europe surpasses 75 million Covid cases WHO's emergencies director Mike Ryan said there was no evidence that existing vaccines needed to be modified to fight Omicron. He said officials should work on getting more people inoculated with vaccines currently on the market. "We need to focus on getting people most at risk vaccinated," Ryan said at a social media event. However, WHO spokesman Christian Lindmeier told a United Nations briefing in Geneva that vaccine makers should prepare for the likelihood of adjusting their products. Ugur Sahin, CEO of Germany's BioNTech, which makes a COVID-19 vaccine with Pfizer, told Reuters Next the company should be able to adapt the shots relatively quickly. Sahin also said current vaccines should continue to provide protection against severe disease, despite mutations. "I believe in principle at a certain timepoint we will need a new vaccine against this new variant. The question is how urgent it needs to be available," Sahin said. Worrying gaps in vaccination Australia became the latest country to report community transmission of the new variant. Officials have found the new strain in 10 US states, adding another challenge to a healthcare system that is already dealing with more COVID-19 illness caused by Delta. More than 264 million people have been reported to be infected by the coronavirus since it was first detected in central China in late 2019 and 5.49 million people have died, according to a Reuters tally. Cases in Europe, the pandemic's current epicentre, crossed the 75 million mark on Friday. Vaccination rates vary from country to country but there are worrying gaps in poorer nations. Indonesia, the world's fourth most populous country and once Asia's COVID-19 epicentre, has fully inoculated only about 35 per cent of its population. In the United States, fewer than 60 per cent of the population have been fully vaccinated, one of the lowest rates among wealthy nations. Aside from wreaking havoc in the travel industry, the clampdown has pounded financial markets and undermined major economies just as they were beginning to recover from the lockdowns triggered by Delta. Germany said it would bar the unvaccinated from all but essential businesses, and legislation to make vaccination mandatory would be drafted for early next year. Several countries, including Britain and the United States, were bringing forward plans to offer booster shots, but, like travel bans, they are controversial. Many scientists say the way to stop the virus spreading is to make sure poorer countries have access to vaccines, not to give blanket booster shots to people in richer countries.

IMF chief says Omicron could dent global economic growth

Pakistan has finally released details of the expenditure on the COVID-19 relief package after International Monetary Fund (IMF) pressured the Imran Khan government to do so. The audit report has exposed irregularities worth PKR 40 billion in operations.

Pakistan reveals COVID-19 relief package details, PKR 40 bn irregularities detected

The IMF has deprived Pakistan of its financial sovereignty. Islamabad cannot borrow money from its own central bank until it pays its debts. Palki Sharma asks: Is the sun setting on Pakistan's economy?

Gravitas: IMF rejects Pakistan's borrowing request | Imran Khan admits 'no money' to run the country

IMF chief Kristalina Georgieva on Sunday urged world leaders gathered at the COP26 summit in Glasgow to show greater policy ambition, calling climate change a "grave threat to macroeconomic and financial stability."

Georgieva published a blog post titled "Climate Threat Demands More Ambitious Global Action" before heading to Glasgow, where she will take part in the climate talks according to an IMF spokesperson.

Also Read |&nbsp;<a href="https://www.wionews.com/world/cop26-india-uk-to-launch-solar-green-grids-initiative-425642">COP26: India, UK to launch solar Green Grids Initiative</a>

If unchanged, "global policies will leave 2030 carbon emissions far higher than needed" to keep alive the goal of limiting global warming to only 1.5 degrees Celsius, wrote the International Monetary Fund's managing director.

"To achieve these cuts, policymakers attending COP26 must address two critical gaps: in ambition and in policy."

Georgieva urged advanced economies to reduce emissions "for reasons of equity and historical responsibility."

"Even if current commitments for 2030 were met, this would only amount to between one- and two-thirds of the reductions needed for temperature goals," she said. "Regardless of how cuts are spread across country groups, everyone has to do more."

The IMF head called on advanced economies to stick to their commitment to provide $100 billion per year in financing to low-income countries, starting in 2020, to offset the cost of moving away from fossil fuels.

Also Read |&nbsp;<a href="https://www.wionews.com/world/cop26-delegate-applications-for-six-afghans-rejected-days-before-event-425289">COP26: Delegate applications for six Afghans rejected days before event</a>

She warned that the latest figures show "we remain short of that target."

Georgieva also argued that widespread carbon pricing should play a "central role" in climate policy, and could help "jump-start emissions reductions."

"A global carbon price exceeding $75 per ton would be needed by 2030, to keep warming below 2 degrees" Celsius, she wrote.

IMF chief Kristalina Georgieva on Sunday urged world leaders gathered at the COP26 summit in Glasgow to show greater policy ambition, calling climate change a "grave threat to macroeconomic and financial stability.

IMF chief Kristalina Georgieva on Sunday urged world leaders gathered at the COP26 summit in Glasgow to show greater policy ambition, calling climate change a "grave threat to macroeconomic and financial stability." Georgieva published a blog post titled "Climate Threat Demands More Ambitious Global Action" before heading to Glasgow, where she will take part in the climate talks according to an IMF spokesperson. Also Read | COP26: India, UK to launch solar Green Grids Initiative If unchanged, "global policies will leave 2030 carbon emissions far higher than needed" to keep alive the goal of limiting global warming to only 1.5 degrees Celsius, wrote the International Monetary Fund's managing director. "To achieve these cuts, policymakers attending COP26 must address two critical gaps: in ambition and in policy." Georgieva urged advanced economies to reduce emissions "for reasons of equity and historical responsibility." "Even if current commitments for 2030 were met, this would only amount to between one- and two-thirds of the reductions needed for temperature goals," she said. "Regardless of how cuts are spread across country groups, everyone has to do more." The IMF head called on advanced economies to stick to their commitment to provide $100 billion per year in financing to low-income countries, starting in 2020, to offset the cost of moving away from fossil fuels. Also Read | COP26: Delegate applications for six Afghans rejected days before event She warned that the latest figures show "we remain short of that target." Georgieva also argued that widespread carbon pricing should play a "central role" in climate policy, and could help "jump-start emissions reductions." "A global carbon price exceeding $75 per ton would be needed by 2030, to keep warming below 2 degrees" Celsius, she wrote.

IMF head urges COP26 leaders to ramp up climate ambition

Chinese Foreign Minister Wang Yi urged the World Bank and International Monetary Fund (IMF) to resume financing support to Afghanistan for reconstruction.

Ever since the Taliban took over Afghanistan in August, the country has been struggling with poverty and a humanitarian crisis.

Various financial institutions suspended their engagement with the country until there was clarity within the international community on the recognition of the government led by the Taliban.

Currently, banks are running out of money, civil servants have not been paid and food prices have surged.&nbsp;

The IMF said that Afghanistan's economy was set to contract up to 30 per cent this year. "Afghanistan is in need of revival on all fronts, and development is the top priority," said Wang.

<a href="https://www.wionews.com/south-asia/imf-suspends-its-engagement-with-afghanistan-413682">Also read |&nbsp;IMF suspends its engagement with Afghanistan</a>

During the call, he urged the US and other Western countries to lift unilateral sanctions on Afghanistan.&nbsp;He also asked the World Health Organization to provide more vaccines and medical supplies to help Afghanistan fight COVID-19.

China has said it will send $30 million worth of emergency humanitarian assistance to Afghanistan. "My overall impression is that the Taliban is eager to have dialogue and cooperation with the outside and that they are serious about this," Wang said.

Earlier, IMF had said it was deeply concerned about the economic conditions in Afghanistan as it urged the international community to take urgent steps to stall a “looming humanitarian crisis” in the country.

During a news conference, IMF spokesperson Gerry Rice told reporters, "Our engagement with Afghanistan has been suspended until there is clarity within the international community on the recognition of the government".

Chinese Foreign Minister Wang Yi urged the World Bank and International Monetary Fund (IMF) to resume financing support to Afghanistan for reconstruction. Ever since the Taliban took over Afghanistan in August, the country has been struggling with poverty and a humanitarian crisis.

Chinese Foreign Minister Wang Yi urged the World Bank and International Monetary Fund (IMF) to resume financing support to Afghanistan for reconstruction. Ever since the Taliban took over Afghanistan in August, the country has been struggling with poverty and a humanitarian crisis. Various financial institutions suspended their engagement with the country until there was clarity within the international community on the recognition of the government led by the Taliban. Currently, banks are running out of money, civil servants have not been paid and food prices have surged. The IMF said that Afghanistan's economy was set to contract up to 30 per cent this year. "Afghanistan is in need of revival on all fronts, and development is the top priority," said Wang. Also read | IMF suspends its engagement with Afghanistan During the call, he urged the US and other Western countries to lift unilateral sanctions on Afghanistan. He also asked the World Health Organization to provide more vaccines and medical supplies to help Afghanistan fight COVID-19. China has said it will send $30 million worth of emergency humanitarian assistance to Afghanistan. "My overall impression is that the Taliban is eager to have dialogue and cooperation with the outside and that they are serious about this," Wang said. Earlier, IMF had said it was deeply concerned about the economic conditions in Afghanistan as it urged the international community to take urgent steps to stall a “looming humanitarian crisis” in the country. During a news conference, IMF spokesperson Gerry Rice told reporters, "Our engagement with Afghanistan has been suspended until there is clarity within the international community on the recognition of the government".

China urges IMF to help Afghanistan amid rising poverty

International Monetary Fund chief economist Gita Gopinath will return to Harvard University in January as planned when her public service leave of absence from the university ends, the IMF said on Tuesday.

Gopinath, the IMF's first female chief economist, joined the fund in October 2018 and led new IMF analytical research on the COVID-19 pandemic and vaccination targets as well as on climate change mitigation.

Also Read |&nbsp;<a href="https://www.wionews.com/india-news/virtual-quadrilateral-meet-india-israel-us-and-uae-agree-to-establish-joint-economic-forum-422125">Virtual quadrilateral meet: India, Israel, US and UAE agree to establish joint economic forum</a>

IMF Managing Director Kristalina Georgieva cited Gopinath's "tremendous" impact on the IMF's work.

"Gita also won the respect and admiration of colleagues in the Research Department, across the Fund, and throughout the membership for leading analytically rigorous work and policy-relevant projects with high impact and influence," Georgieva said in a statement.

Gopinath won praise for drafting a $50 billion proposal on ending the pandemic by vaccinating at least 40 per cent&nbsp;of the population in all countries by the end of 2021, a plan later endorsed by the World Bank, the World Trade Organization and the World Health Organization.

Her departure from the global crisis lender is unrelated to the ethics scandal that had raised questions about Georgieva's future as the IMF's leader, according to a person familiar with the matter.

Gopinath's leave from Harvard, already extended by one year, was ending, and her family had remained in Boston, the person said. She will remain at the IMF to oversee the release of the fund's next World Economic Outlook forecasts in January.

Also Read |&nbsp;<a href="https://www.wionews.com/india-news/indias-electricity-demand-picks-up-in-october-as-coal-shortage-lingers-421311">India's electricity demand picks up in October as coal shortage lingers</a>

The IMF executive board last week cleared Georgieva of any wrongdoing related to allegations that in 2017, as the World Bank's chief executive, she put undue pressure on bank staff to alter data to favor China.

The US&nbsp;Treasury Department continues press for changes at the institutions to safeguard their integrity.

Gopinath told a news conference last week that the IMF takes data integrity "incredibly seriously" and has robust systems in place but is always looking for ways to improve.

International Monetary Fund chief economist Gita Gopinath will return to Harvard University in January as planned when her public service leave of absence from the university ends, the IMF said on Tuesday.

International Monetary Fund chief economist Gita Gopinath will return to Harvard University in January as planned when her public service leave of absence from the university ends, the IMF said on Tuesday. Gopinath, the IMF's first female chief economist, joined the fund in October 2018 and led new IMF analytical research on the COVID-19 pandemic and vaccination targets as well as on climate change mitigation. Also Read | Virtual quadrilateral meet: India, Israel, US and UAE agree to establish joint economic forum IMF Managing Director Kristalina Georgieva cited Gopinath's "tremendous" impact on the IMF's work. "Gita also won the respect and admiration of colleagues in the Research Department, across the Fund, and throughout the membership for leading analytically rigorous work and policy-relevant projects with high impact and influence," Georgieva said in a statement. Gopinath won praise for drafting a $50 billion proposal on ending the pandemic by vaccinating at least 40 per cent of the population in all countries by the end of 2021, a plan later endorsed by the World Bank, the World Trade Organization and the World Health Organization. Her departure from the global crisis lender is unrelated to the ethics scandal that had raised questions about Georgieva's future as the IMF's leader, according to a person familiar with the matter. Gopinath's leave from Harvard, already extended by one year, was ending, and her family had remained in Boston, the person said. She will remain at the IMF to oversee the release of the fund's next World Economic Outlook forecasts in January. Also Read | India's electricity demand picks up in October as coal shortage lingers The IMF executive board last week cleared Georgieva of any wrongdoing related to allegations that in 2017, as the World Bank's chief executive, she put undue pressure on bank staff to alter data to favor China. The US Treasury Department continues press for changes at the institutions to safeguard their integrity. Gopinath told a news conference last week that the IMF takes data integrity "incredibly seriously" and has robust systems in place but is always looking for ways to improve.

IMF chief economist Gopinath to leave fund, return to Harvard

The IMF has presented its global outlook but has omitted two countries as there is no clarity about road ahead for these two countries. Leaders of the G20 group of nations have agreed to work together to try and head off the humanitarian crisis looming in Afghanistan.

No IMF forecast for Afghanistan and Lebanon

India's economy, which contracted due to the covid pandemic, is expected to grow by 9.5% in 2021, and 8.5% in 2022, according to latest projections released by the international monetary fund.

India's economy expected to grow by 9.5% in 2021

International Monetary Fund's board on Monday reaffirmed its confidence in scandal hit Kristalina Georgieva, the Bulgarian economist.

Georgieva was quite in a soup after September 16 publication of the findings of an investigation carried out at the request of the ethics committee of the World Bank, where Georgieva had previously held a senior role.

The investigation by law firm WilmerHale concluded that Georgieva had manipulated data in favor of China while at the global body, which she has denied.

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&nbsp;

Drawn out uncertainty over whether Georgieva would keep her job ended Monday when the IMF board said it "reaffirms its full confidence in the Managing Director's leadership and ability to continue to effectively carry out her duties."

"The Executive Board considered that the information presented in the course of its review did not conclusively demonstrate that the Managing Director played an improper role regarding the Doing Business 2018 Report when she was CEO of the World Bank," its statement read.

The board added it would "meet to consider possible additional steps to ensure the strength of institutional safeguards."

WilmerHale's controversial findings center on the drafting of the 2018 and 2020 editions of the World Bank report that ranks countries according to their ease of doing business.

The push came while bank leadership was engaged in sensitive negotiations with Beijing over increasing the bank's lending capital.

(With inputs from agencies)

International Monetary Fund's board on Monday reaffirmed its confidence in scandal hit Kristalina Georgieva, the Bulgarian economist. Georgieva was quite in a soup after September 16 publication of the findings of an investigation carried out at the request of the ethics committee of the World Bank, where Georgieva had previously held a senior role.

International Monetary Fund's board on Monday reaffirmed its confidence in scandal hit Kristalina Georgieva, the Bulgarian economist. Georgieva was quite in a soup after September 16 publication of the findings of an investigation carried out at the request of the ethics committee of the World Bank, where Georgieva had previously held a senior role. The investigation by law firm WilmerHale concluded that Georgieva had manipulated data in favor of China while at the global body, which she has denied. × Drawn out uncertainty over whether Georgieva would keep her job ended Monday when the IMF board said it "reaffirms its full confidence in the Managing Director's leadership and ability to continue to effectively carry out her duties." "The Executive Board considered that the information presented in the course of its review did not conclusively demonstrate that the Managing Director played an improper role regarding the Doing Business 2018 Report when she was CEO of the World Bank," its statement read. The board added it would "meet to consider possible additional steps to ensure the strength of institutional safeguards." WilmerHale's controversial findings center on the drafting of the 2018 and 2020 editions of the World Bank report that ranks countries according to their ease of doing business. The push came while bank leadership was engaged in sensitive negotiations with Beijing over increasing the bank's lending capital. (With inputs from agencies)

Kristalina Georgieva to remain IMF chief, gets support from board

The International Monetary Fund said Friday it will decide "very soon" whether its embattled managing director Kristalina Georgieva keeps her job.

An investigation by a law firm has concluded that she manipulated data in favor of China while in a senior role at the World Bank.

The IMF Executive Board said after a meeting Friday that it has made "significant progress" in its assessment of the case but agreed "to request more clarifying details with a view to very soon concluding its consideration of the matter."

On Thursday Georgieva, 68, said she hoped for an "expeditious resolution" of the case.

The IMF Executive Board is reviewing last month's investigation by the law firm WilmerHale that found that during her time as World Bank CEO, Georgieva was among top officials who pressured staff into changing data to China's benefit in the 2018 edition of its closely watched Doing Business report.

Georgieva spoke to the IMF board this week.

She has repeatedly denied the report's conclusions, and on Thursday released a letter from her attorney to the board objecting to WilmerHale's findings, as well as her 12-page testimony to the 24 board members.

The law firm found that Georgieva along with her associate Simeon Djankov, a former Bulgarian finance minister who created the report, and Jim Yong Kim, then-president of the bank, pressured staff to change the calculation of China's ranking to avoid angering Beijing.&nbsp;

The push came while bank leadership was engaged in sensitive negotiations with Beijing over increasing the bank's lending capital.

The Executive Board could meet again Saturday, a source close to the matter said on condition of anonymity.

This source added that Georgieva has won the support of France and other European countries.

The United States, a key member of the IMF, has not yet stated its position on this controversy, according to two sources with knowledge of the situation.

Time is of the essence because the IMF and the World Bank begin their fall meetings on Monday.

The International Monetary Fund said Friday it will decide "very soon" whether its embattled managing director Kristalina Georgieva keeps her job. An investigation by a law firm has concluded that she manipulated data in favor of China while in a senior role at the World Bank.

The International Monetary Fund said Friday it will decide "very soon" whether its embattled managing director Kristalina Georgieva keeps her job. An investigation by a law firm has concluded that she manipulated data in favor of China while in a senior role at the World Bank. The IMF Executive Board said after a meeting Friday that it has made "significant progress" in its assessment of the case but agreed "to request more clarifying details with a view to very soon concluding its consideration of the matter." On Thursday Georgieva, 68, said she hoped for an "expeditious resolution" of the case. The IMF Executive Board is reviewing last month's investigation by the law firm WilmerHale that found that during her time as World Bank CEO, Georgieva was among top officials who pressured staff into changing data to China's benefit in the 2018 edition of its closely watched Doing Business report. Georgieva spoke to the IMF board this week. She has repeatedly denied the report's conclusions, and on Thursday released a letter from her attorney to the board objecting to WilmerHale's findings, as well as her 12-page testimony to the 24 board members. The law firm found that Georgieva along with her associate Simeon Djankov, a former Bulgarian finance minister who created the report, and Jim Yong Kim, then-president of the bank, pressured staff to change the calculation of China's ranking to avoid angering Beijing. The push came while bank leadership was engaged in sensitive negotiations with Beijing over increasing the bank's lending capital. The Executive Board could meet again Saturday, a source close to the matter said on condition of anonymity. This source added that Georgieva has won the support of France and other European countries. The United States, a key member of the IMF, has not yet stated its position on this controversy, according to two sources with knowledge of the situation. Time is of the essence because the IMF and the World Bank begin their fall meetings on Monday.

IMF says it will decide 'very soon' on whether Georgieva keeps her job

International Monetary Fund chief Kristalina Georgieva said the law firm WilmerHale mischaracterized her actions while serving as ceo of the world bank, and assured her that her participation in its investigation was confidential.

IMF chief Kristalina Georgieva says WilmerHale mischaracterized her actions

Venezuelan Vice President Delcy Rodriguez has slammed the US for vetoing Venezuela`s access to $5 billion in International Monetary Fund (IMF) Special Drawing Rights.

"The International Monetary Fund refuses to give our people the $5 billion dollars that correspond to our country to fight the pandemic. The reason: the express veto of the US against Venezuela," said Rodriguez.

In a teleconference speech to the Un Conference on Trade and Development (UNCTAD), Rodriguez added the US has "blocked" Venezuela's foreign trade through sanctions, otherwise known as "unilateral coercive measures", reports Xinhua news agency.

"We have been the target of more than 430 unilateral coercive measures that have blocked our foreign and private trade, against all legal principles of sovereign immunity," said the Vice President.

In the oil sector alone, the sanctions have led to losses of more than $63 billion, leading to "a drastic 99 per cent reduction in revenue" for Venezuela, said Rodriguez.

"These measures are crimes against humanity and violate the international system of guarantee of human rights," she said.

Rodriguez formally issued a "request for UNCTAD to group, quantify and analySe the macroeconomic impacts of unilateral coercive measures" on Venezuela.

Despite Washington's economic "attacks", the South American nation "is making progress in the recovery of its economic equilibrium, through progressive openness in foreign trade" and in the investment sector, she said.

Venezuelan Vice President Delcy Rodriguez has slammed the US for vetoing Venezuela`s access to $5 billion in International Monetary Fund (IMF) Special Drawing Rights.

Venezuelan Vice President Delcy Rodriguez has slammed the US for vetoing Venezuela`s access to $5 billion in International Monetary Fund (IMF) Special Drawing Rights. "The International Monetary Fund refuses to give our people the $5 billion dollars that correspond to our country to fight the pandemic. The reason: the express veto of the US against Venezuela," said Rodriguez. In a teleconference speech to the Un Conference on Trade and Development (UNCTAD), Rodriguez added the US has "blocked" Venezuela's foreign trade through sanctions, otherwise known as "unilateral coercive measures", reports Xinhua news agency. "We have been the target of more than 430 unilateral coercive measures that have blocked our foreign and private trade, against all legal principles of sovereign immunity," said the Vice President. In the oil sector alone, the sanctions have led to losses of more than $63 billion, leading to "a drastic 99 per cent reduction in revenue" for Venezuela, said Rodriguez. "These measures are crimes against humanity and violate the international system of guarantee of human rights," she said. Rodriguez formally issued a "request for UNCTAD to group, quantify and analySe the macroeconomic impacts of unilateral coercive measures" on Venezuela. Despite Washington's economic "attacks", the South American nation "is making progress in the recovery of its economic equilibrium, through progressive openness in foreign trade" and in the investment sector, she said.

Venezuela slams US veto of access to IMF resources

The International Monetary Fund's executive board will interview Managing Director Kristalina Georgieva on Wednesday as it reviews claims she pressured World Bank staff to alter data to favor China in her previous role.

International Monetary Fund’s executive board to grill Georgieva on data-rigging claims

IMF chief Kristalina Georgieva criticised as "false and spurious" the findings of an independent probe into allegations that as World Bank head she pressured staff to manipulate data to make China`s business climate appear more favorable. 
 
In a statement she plans to present to the executive board of the International Monetary Fund, Georgieva also accused the office of the World Bank`s past president, Jim Kong Kim, of manipulation. 
 
She said she intervened to block a proposal from a member of Kim`s staff to include Hong Kong data in China`s ranking in the World Bank`s Doing Business 2018 report, which would have significantly improved its standing. Kim has not responded to requests for comment. 
 
The World Bank last week released a report on the investigation by law firm WilmerHale. It found that senior bank leaders including Georgieva unduly pressured staff to alter data to improve China`s ranking in the Doing Business report while the bank was seeking China`s support for a capital increase. 
 
Georgieva, then World Bank chief executive, has excoriated the probe publicly and to her staff, but she went into greater detail in the statement to the IMF`s executive board, a copy of which was seen by Reuters on Friday. 
 
She said the probe`s findings contained "the false and spurious insinuation ... that my colleagues and I at the World Bank would inflate a country’s Doing Business ranking in exchange for capital commitments." 
 
"To be clear: no such thing happened and no such thing would ever happen under my leadership," she said. 
 
Georgieva said her effort to prevent Hong Kong data from being added to China`s Doing Business ranking demonstrated her concern for preserving the integrity of World Bank data. 
 
The Bulgarian economist, the first person from a developing country to head the World Bank, has faced calls for her resignation over the matter, though former colleagues have spoken out in support of her. 
 
The IMF board met on Tuesday to hear an initial report from its ethics committee and agreed to meet again soon. 
 
The chair of the US&nbsp;House of Representatives Financial Services Committee, Maxine Waters, on Friday said the findings detailing "undue influence by China" at the World Bank and Georgieva`s role in "manipulating `Doing Business` data at the behest of the Chinese government is very troubling." 
 
"This has undermined the reputation of the World Bank, and it has also called into question the current leadership at the IMF, where the integrity of data is critical to its mission, and where undue influence by any self-interested power could put the stability of the global financial system at risk," Waters said. 
 
The World Bank`s current president, David Malpass, has said the findings of the WilmerHale investigation speak for themselves, but has not commented in greater detail. 
 
Georgieva said the WilmerHale probe wrongly inferred that she asked bank officials to manage China`s expectations about its ranking in the Doing Business report because she was worried that China could withhold support for the capital increase. 
 
Georgieva said she did regret that colleagues at the bank "did not believe that they could speak out to raise with me issues about data integrity," and was committed to fostering better communication.

IMF chief Kristalina Georgieva criticised as "false and spurious" the findings of an independent probe into allegations that as World Bank head she pressured staff to manipulate data to make China`s business climate appear more favorable.

IMF chief Kristalina Georgieva criticised as "false and spurious" the findings of an independent probe into allegations that as World Bank head she pressured staff to manipulate data to make China`s business climate appear more favorable. In a statement she plans to present to the executive board of the International Monetary Fund, Georgieva also accused the office of the World Bank`s past president, Jim Kong Kim, of manipulation. She said she intervened to block a proposal from a member of Kim`s staff to include Hong Kong data in China`s ranking in the World Bank`s Doing Business 2018 report, which would have significantly improved its standing. Kim has not responded to requests for comment. The World Bank last week released a report on the investigation by law firm WilmerHale. It found that senior bank leaders including Georgieva unduly pressured staff to alter data to improve China`s ranking in the Doing Business report while the bank was seeking China`s support for a capital increase. Georgieva, then World Bank chief executive, has excoriated the probe publicly and to her staff, but she went into greater detail in the statement to the IMF`s executive board, a copy of which was seen by Reuters on Friday. She said the probe`s findings contained "the false and spurious insinuation ... that my colleagues and I at the World Bank would inflate a country’s Doing Business ranking in exchange for capital commitments." "To be clear: no such thing happened and no such thing would ever happen under my leadership," she said. Georgieva said her effort to prevent Hong Kong data from being added to China`s Doing Business ranking demonstrated her concern for preserving the integrity of World Bank data. The Bulgarian economist, the first person from a developing country to head the World Bank, has faced calls for her resignation over the matter, though former colleagues have spoken out in support of her. The IMF board met on Tuesday to hear an initial report from its ethics committee and agreed to meet again soon. The chair of the US House of Representatives Financial Services Committee, Maxine Waters, on Friday said the findings detailing "undue influence by China" at the World Bank and Georgieva`s role in "manipulating `Doing Business` data at the behest of the Chinese government is very troubling." "This has undermined the reputation of the World Bank, and it has also called into question the current leadership at the IMF, where the integrity of data is critical to its mission, and where undue influence by any self-interested power could put the stability of the global financial system at risk," Waters said. The World Bank`s current president, David Malpass, has said the findings of the WilmerHale investigation speak for themselves, but has not commented in greater detail. Georgieva said the WilmerHale probe wrongly inferred that she asked bank officials to manage China`s expectations about its ranking in the Doing Business report because she was worried that China could withhold support for the capital increase. Georgieva said she did regret that colleagues at the bank "did not believe that they could speak out to raise with me issues about data integrity," and was committed to fostering better communication.

IMF chief Kristalina Georgieva accuses former World Bank president Kim's office of manipulation

The International Monetary Fund (IMF) has said its engagement with Afghanistan will remain suspended until there is clarity within the international community on the recognition of the government led by the Taliban.

The organisation said that it was deeply concerned about the economic conditions in Afghanistan as it urged the international community to take urgent steps to stall a “looming humanitarian crisis” in the country.

During a news conference, IMF spokesperson Gerry Rice told reporters, "Our engagement with Afghanistan has been suspended until there is clarity within the international community on the recognition of the government".

“We’re guided by the international community in terms of the recognition of the government in Afghanistan and we don’t have that. So, the IMF programme there has been put on hold; and, again, as we said, last month, the country cannot access IMF resources, SDRs, and so on, at this point".

<a href="https://www.wionews.com/south-asia/afghanistan-haqqani-networks-anas-haqqani-says-india-is-not-a-true-friend-413565">Also read |&nbsp;Afghanistan: Haqqani network's Anas Haqqani says India is 'not a true friend'</a>

Afghanistan had already been facing chronic poverty and drought but the situation has deteriorated since the Taliban seized power with the disruption of aid, the departure of tens of thousands of people including government and aid workers, and the collapse of much economic activity.

Foreign donors have suspended aid to Afghanistan. Ordinary bank transfers to individuals in Afghanistan have also been blocked.&nbsp;

However, as per Rice, the IMF stands ready to work with the international community to advocate for urgent actions to stall a looming humanitarian crisis.&nbsp;

The IMF is deeply concerned with the difficult economic situation in Afghanistan and the humanitarian situation in Afghanistan.

“We have said the immediate focus should indeed be on that humanitarian situation, aid to help the Afghanistan people; and allowing the flow of remittances and small-scale transfers; and providing assistance to countries hosting Afghan refugees,” he said.

The International Monetary Fund (IMF) has said its engagement with Afghanistan will remain suspended until there is clarity within the international community on the recognition of the government led by the Taliban.

The International Monetary Fund (IMF) has said its engagement with Afghanistan will remain suspended until there is clarity within the international community on the recognition of the government led by the Taliban. The organisation said that it was deeply concerned about the economic conditions in Afghanistan as it urged the international community to take urgent steps to stall a “looming humanitarian crisis” in the country. During a news conference, IMF spokesperson Gerry Rice told reporters, "Our engagement with Afghanistan has been suspended until there is clarity within the international community on the recognition of the government". “We’re guided by the international community in terms of the recognition of the government in Afghanistan and we don’t have that. So, the IMF programme there has been put on hold; and, again, as we said, last month, the country cannot access IMF resources, SDRs, and so on, at this point". Also read | Afghanistan: Haqqani network's Anas Haqqani says India is 'not a true friend' Afghanistan had already been facing chronic poverty and drought but the situation has deteriorated since the Taliban seized power with the disruption of aid, the departure of tens of thousands of people including government and aid workers, and the collapse of much economic activity. Foreign donors have suspended aid to Afghanistan. Ordinary bank transfers to individuals in Afghanistan have also been blocked. However, as per Rice, the IMF stands ready to work with the international community to advocate for urgent actions to stall a looming humanitarian crisis. The IMF is deeply concerned with the difficult economic situation in Afghanistan and the humanitarian situation in Afghanistan. “We have said the immediate focus should indeed be on that humanitarian situation, aid to help the Afghanistan people; and allowing the flow of remittances and small-scale transfers; and providing assistance to countries hosting Afghan refugees,” he said.

IMF suspends its engagement with Afghanistan

Pakistan's central bank announced on Tuesday that it has received $2.75 billion from the International Monetary Fund (IMF) under a Special Drawing Rights (SDR) programme to help low-income countries affected by the coronavirus.&nbsp;

The payments, which are part of a $650 billion worldwide programme, would help Pakistan shore up its foreign reserves, which have been weakened by a rise in the current account deficit and a drop in remittances from overseas employees.

Pakistan enrolled in a $6 billion IMF programme in 2019, which has been awaiting its sixth review since March.&nbsp;

More than 1.1 million coronavirus cases have been documented in Pakistan, with more than 25,000 people dying as a result of the epidemic.&nbsp;

Meanwhile, in the interbank market on Monday, the Pakistani currency fell to a 10-month low of Rs164.43 versus the US dollar.

According to the central bank's figures, the Pakistani rupee has depreciated by 6.39 percent in the current fiscal year (starting July 1) to date, and 7.98 percent since it touched a 22-month high of Rs152.27 in May.&nbsp;

(With inputs from agencies)

Pakistan's central bank announced on Tuesday that it has received $2.75 billion from the International Monetary Fund (IMF) under a Special Drawing Rights (SDR) programme to help low-income countries affected by the coronavirus.

Pakistan's central bank announced on Tuesday that it has received $2.75 billion from the International Monetary Fund (IMF) under a Special Drawing Rights (SDR) programme to help low-income countries affected by the coronavirus. The payments, which are part of a $650 billion worldwide programme, would help Pakistan shore up its foreign reserves, which have been weakened by a rise in the current account deficit and a drop in remittances from overseas employees. Pakistan enrolled in a $6 billion IMF programme in 2019, which has been awaiting its sixth review since March. More than 1.1 million coronavirus cases have been documented in Pakistan, with more than 25,000 people dying as a result of the epidemic. Meanwhile, in the interbank market on Monday, the Pakistani currency fell to a 10-month low of Rs164.43 versus the US dollar. According to the central bank's figures, the Pakistani rupee has depreciated by 6.39 percent in the current fiscal year (starting July 1) to date, and 7.98 percent since it touched a 22-month high of Rs152.27 in May. (With inputs from agencies)

Pakistan gets $2.75 billion in COVID-19 support funds from IMF

After the Taliban's takeover of Afghanistan last weekend, the International Monetary Fund (IMF) has said Afghanistan will no longer be able to access the lender's resources. An IMF spokesperson said it was due to "lack of clarity within the international community" over recognising a government in Afghanistan.

Afghanistan will no longer be able to access the lender's resources: IMF

For the next fiscal, however, the IMF has forecast an 8.5% growth for India, 160 basis points higher than its April forecast.

IMF cuts India's GDP growth forecast to 9.5 per cent

While the global economy is still growing, the uneven distribution of vaccines is widening disparities as rich countries pick up speed and leave developing nations behind, the IMF warned Tuesday.

"Vaccine access has emerged as the principal fault line along which the global recovery splits into two blocs," the International Monetary Fund said in its updated World Economic Outlook.

But the IMF warned of the danger to the whole world if new virus variants are allowed to take hold.

The recovery "is not assured even in countries where infections are currently very low so long as the virus circulates elsewhere," the report said.

World GDP will expand by six percent this year, unchanged from the April forecast, but IMF chief economist Gita Gopinath flagged the "widening gap" as advanced economies grow faster and developing nations, especially in Asia, slow.

The United States is projected to see much faster growth this year than previously forecast, expanding seven percent growth thanks to massive government spending and widespread COVID-19 vaccinations, but the IMF slashed the forecast for India, which is facing a resurgence of infections.

The Washington-based crisis lender once again stressed that "the immediate priority is to deploy vaccines equitably worldwide," and pushed a $50 billion plan that offers a "feasible cost to end the pandemic."

Advanced nations have vaccinated nearly 40 percent of the population, compared to barely 11 percent in emerging markets and a tiny fraction in low-income countries, the report said.

Gopinath said "at least 1 billion vaccine doses should be shared in 2021 by countries with surplus vaccines."

Failure to achieve widespread vaccinations could allow highly infectious virus variants to take hold, like the Delta variant that has become prevalent. That could derail the recovery, wiping out $4.5 trillion cumulatively from global GDP by 2025, more than half of that lost from rich nations, the fund estimates.

And this is not just a "tail risk" that is highly unlikely but "a realistic downside risk," said Petya Koeva-Brooks, deputy director of the IMF Research Department.

More worried now

Although some emerging market nations like Brazil and Mexico are poised to show stronger growth this year, developing nations as a group are struggling to return to their pre-pandemic levels.

"I would say we're more worried than we were back in April," Koeva-Brooks told AFP.

Vaccinations allowed an economic reopening and led to upgrades for the United States for this year and next, when growth is expected to hit 4.9 percent.

However, that assumes the US Congress will approve another round of spending later this year of about $4 trillion in President Joe Biden's infrastructure and job creation programs.

The IMF also raised the 2021 estimates for Canada and Britain to 6.3 percent and seven percent, respectively, while the euro area GDP is expected to expand 4.6 percent, just slightly higher than the April WEO.

India's growth forecast was slashed three points to 9.5 percent, and even China was trimmed by three-tenths of a percentage point to 8.1 percent.

In Latin America, Mexico is expected to post higher growth, helped by the positive spillovers from the recovering US economy as well as from increasing domestic demand, while Brazil also got a boost amid rising commodity prices, which will fade next year, the report said.

Temporary or persistent?

Rising prices are another factor weighing on the global recovery, and pose a challenge to policymakers.

And while the recent inflation spike is the result of the unprecedented and uneven turnaround from the pandemic and should prove temporary, the IMF raised the possibility that price increases could become "persistent."

"The unprecedented convulsion in the global economy last year continues to trigger aftershocks," the IMF said, pointing to a shortage of computer chips and a lack of shipping containers where they are needed, which has delayed deliveries of materials.

Koeva-Brooks said some of the bottlenecks and price jumps were to be expected and should be temporary, but acknowledged that the situation is hard to measure.

"We've never seen how to reopen economies after a crisis like this one," she said.

The IMF said inflation should return to pre-pandemic ranges in 2022 and urged central banks to hold off on reacting to the temporary price pressures -- but to be ready to take "preemptive action."

While the global economy is still growing, the uneven distribution of vaccines is widening disparities as rich countries pick up speed and leave developing nations behind, the IMF warned Tuesday.

While the global economy is still growing, the uneven distribution of vaccines is widening disparities as rich countries pick up speed and leave developing nations behind, the IMF warned Tuesday. "Vaccine access has emerged as the principal fault line along which the global recovery splits into two blocs," the International Monetary Fund said in its updated World Economic Outlook. But the IMF warned of the danger to the whole world if new virus variants are allowed to take hold. The recovery "is not assured even in countries where infections are currently very low so long as the virus circulates elsewhere," the report said. World GDP will expand by six percent this year, unchanged from the April forecast, but IMF chief economist Gita Gopinath flagged the "widening gap" as advanced economies grow faster and developing nations, especially in Asia, slow. The United States is projected to see much faster growth this year than previously forecast, expanding seven percent growth thanks to massive government spending and widespread COVID-19 vaccinations, but the IMF slashed the forecast for India, which is facing a resurgence of infections. The Washington-based crisis lender once again stressed that "the immediate priority is to deploy vaccines equitably worldwide," and pushed a $50 billion plan that offers a "feasible cost to end the pandemic." Advanced nations have vaccinated nearly 40 percent of the population, compared to barely 11 percent in emerging markets and a tiny fraction in low-income countries, the report said. Gopinath said "at least 1 billion vaccine doses should be shared in 2021 by countries with surplus vaccines." Failure to achieve widespread vaccinations could allow highly infectious virus variants to take hold, like the Delta variant that has become prevalent. That could derail the recovery, wiping out $4.5 trillion cumulatively from global GDP by 2025, more than half of that lost from rich nations, the fund estimates. And this is not just a "tail risk" that is highly unlikely but "a realistic downside risk," said Petya Koeva-Brooks, deputy director of the IMF Research Department. More worried now Although some emerging market nations like Brazil and Mexico are poised to show stronger growth this year, developing nations as a group are struggling to return to their pre-pandemic levels. "I would say we're more worried than we were back in April," Koeva-Brooks told AFP. Vaccinations allowed an economic reopening and led to upgrades for the United States for this year and next, when growth is expected to hit 4.9 percent. However, that assumes the US Congress will approve another round of spending later this year of about $4 trillion in President Joe Biden's infrastructure and job creation programs. The IMF also raised the 2021 estimates for Canada and Britain to 6.3 percent and seven percent, respectively, while the euro area GDP is expected to expand 4.6 percent, just slightly higher than the April WEO. India's growth forecast was slashed three points to 9.5 percent, and even China was trimmed by three-tenths of a percentage point to 8.1 percent. In Latin America, Mexico is expected to post higher growth, helped by the positive spillovers from the recovering US economy as well as from increasing domestic demand, while Brazil also got a boost amid rising commodity prices, which will fade next year, the report said. Temporary or persistent? Rising prices are another factor weighing on the global recovery, and pose a challenge to policymakers. And while the recent inflation spike is the result of the unprecedented and uneven turnaround from the pandemic and should prove temporary, the IMF raised the possibility that price increases could become "persistent." "The unprecedented convulsion in the global economy last year continues to trigger aftershocks," the IMF said, pointing to a shortage of computer chips and a lack of shipping containers where they are needed, which has delayed deliveries of materials. Koeva-Brooks said some of the bottlenecks and price jumps were to be expected and should be temporary, but acknowledged that the situation is hard to measure. "We've never seen how to reopen economies after a crisis like this one," she said. The IMF said inflation should return to pre-pandemic ranges in 2022 and urged central banks to hold off on reacting to the temporary price pressures -- but to be ready to take "preemptive action."

IMF warns developing nations falling behind due to unequal vaccine access

IMF Managing Director Kristalina Georgieva said that the International Monetary Fund is estimating this month that global growth for 2021 will be about 6%, the same as forecast in April, but with some countries growing faster and others more slowly.

World Business Watch: IMF to keep 2021 global growth forecast at 6% says Kristalina Georgieva

The International Monetary Fund said Friday that its executive board approved a plan to issue $650 billion worth of reserve funds, essentially creating money that troubled countries can use to purchase vaccines, finance health care and pay down debt.

The new allocation of so-called Special Drawing Rights would be the largest such expansion of currency reserves in the IMF’s history. If given final approval by the IMF’s board of governors, as is expected, the reserves could become available by the end of August.

“This is a shot in the arm for the world,” Kristalina Georgieva, managing director of the IMF, said in a statement. “The SDR allocation will help every IMF member country — particularly vulnerable countries — and strengthen their response to the COVID-19 crisis.”

Georgieva made the announcement as finance ministers and central bank governors of the Group of 20 nations were gathering in Venice to discuss international tax reform, climate change and the global economic response to the pandemic. The IMF, established in 1944 to try to broker economic cooperation, has warned of a two-track economic recovery, with poor countries being left behind while advanced economies experience rapid expansions.

It remains to be seen how far the $650 billion will go to help developing countries as they race to vaccinate people before new variants of the virus take hold, including the Delta variant, which has plunged many countries back into a health crisis.

The United Nations Conference on Trade and Development called last month for $1 trillion worth of Special Drawing Rights to be made available by the IMF as a “helicopter money drop for those being left behind.”

The United States has thrown its support behind the expansion of the IMF reserves, reversing a Trump administration policy and angering Republican lawmakers in the process.

The Trump administration balked at the proposal last year and prevented it from moving forward. It argued at the time that boosting the emergency reserves was an inefficient way to provide aid to poor countries and that doing so would provide more resources to advanced economies that do not need the help, like China and Russia. Republican lawmakers have since accused the Biden administration of bolstering the fortunes of adversaries, while doing little to actually help developing nations.

Under Treasury Secretary Janet Yellen, the U.S. has taken a different view and now supports the allocation. Yellen believes that rich countries will have little use for the SDRs but that developing economies will be able to use them to access enough money to vaccinate their people.

Special Drawing Rights work by allowing member countries of the IMF to cash the asset in for hard currency. Their value is based on a basket of international currencies and is reset every five years.

Each of the 190 countries that is a member of the IMF gets an allotment of SDRs based on their shares in the fund, which tracks with the size of a country’s economy. The new reserves would also be distributed under this formula, with the largest economic powers like the United States gaining the biggest tranche.

The drawing rights cannot be used to buy things on their own, but they can be traded for currencies that can. If two countries agree, they can trade their Special Drawing Rights for cash, with the IMF acting as a middleman to facilitate the trade.

That has prompted some criticism that the program will not work unless rich countries voluntarily transfer their holdings to poorer nations. To address some of those concerns, the IMF is working to develop a new trust fund where rich countries can channel their excess SDRs. The goal is to create a $100 billion pot of money that poor countries take loans from so that they can expand health care systems or address climate change in conjunction with existing IMF programs.

The U.S. has previously indicated it will make available about one-fifth of its allocation, worth about $20 billion. At the urging of the U.S., the IMF is also working to create greater transparency around how the assets are being used so that is clear that U.S. adversaries are not benefiting from the proceeds.

The International Monetary Fund said Friday that its executive board approved a plan to issue $650 billion worth of reserve funds, essentially creating money that troubled countries can use to purchase vaccines, finance health care and pay down debt.

The International Monetary Fund said Friday that its executive board approved a plan to issue $650 billion worth of reserve funds, essentially creating money that troubled countries can use to purchase vaccines, finance health care and pay down debt. The new allocation of so-called Special Drawing Rights would be the largest such expansion of currency reserves in the IMF’s history. If given final approval by the IMF’s board of governors, as is expected, the reserves could become available by the end of August. “This is a shot in the arm for the world,” Kristalina Georgieva, managing director of the IMF, said in a statement. “The SDR allocation will help every IMF member country — particularly vulnerable countries — and strengthen their response to the COVID-19 crisis.” Georgieva made the announcement as finance ministers and central bank governors of the Group of 20 nations were gathering in Venice to discuss international tax reform, climate change and the global economic response to the pandemic. The IMF, established in 1944 to try to broker economic cooperation, has warned of a two-track economic recovery, with poor countries being left behind while advanced economies experience rapid expansions. It remains to be seen how far the $650 billion will go to help developing countries as they race to vaccinate people before new variants of the virus take hold, including the Delta variant, which has plunged many countries back into a health crisis. The United Nations Conference on Trade and Development called last month for $1 trillion worth of Special Drawing Rights to be made available by the IMF as a “helicopter money drop for those being left behind.” The United States has thrown its support behind the expansion of the IMF reserves, reversing a Trump administration policy and angering Republican lawmakers in the process. The Trump administration balked at the proposal last year and prevented it from moving forward. It argued at the time that boosting the emergency reserves was an inefficient way to provide aid to poor countries and that doing so would provide more resources to advanced economies that do not need the help, like China and Russia. Republican lawmakers have since accused the Biden administration of bolstering the fortunes of adversaries, while doing little to actually help developing nations. Under Treasury Secretary Janet Yellen, the U.S. has taken a different view and now supports the allocation. Yellen believes that rich countries will have little use for the SDRs but that developing economies will be able to use them to access enough money to vaccinate their people. Special Drawing Rights work by allowing member countries of the IMF to cash the asset in for hard currency. Their value is based on a basket of international currencies and is reset every five years. Each of the 190 countries that is a member of the IMF gets an allotment of SDRs based on their shares in the fund, which tracks with the size of a country’s economy. The new reserves would also be distributed under this formula, with the largest economic powers like the United States gaining the biggest tranche. The drawing rights cannot be used to buy things on their own, but they can be traded for currencies that can. If two countries agree, they can trade their Special Drawing Rights for cash, with the IMF acting as a middleman to facilitate the trade. That has prompted some criticism that the program will not work unless rich countries voluntarily transfer their holdings to poorer nations. To address some of those concerns, the IMF is working to develop a new trust fund where rich countries can channel their excess SDRs. The goal is to create a $100 billion pot of money that poor countries take loans from so that they can expand health care systems or address climate change in conjunction with existing IMF programs. The U.S. has previously indicated it will make available about one-fifth of its allocation, worth about $20 billion. At the urging of the U.S., the IMF is also working to create greater transparency around how the assets are being used so that is clear that U.S. adversaries are not benefiting from the proceeds.

IMF board backs $650 billion aid plan to help poor countries

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