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

Hundreds of Sudanese protesters took to the streets of major cities on Wednesday to demand the government's resignation over IMF-backed economic reforms seen as too harsh, AFP correspondents said.

"We want the fall of the regime" and "No to (IMF) policies", shouted demonstrators who massed outside the presidential palace in Khartoum.

The protests erupted a day after the International Monetary Fund approved a $2.5 billion loan and debt relief deal that will see&nbsp;Sudan's external debt reduced by some $50 billion.

Public discontent has mounted over the reforms that slashed subsidies on petrol and diesel, more than doubling their price.

The dozens who had gathered in Khartoum burned tyres and brandished banners that read "Bread for the poor" before they were dispersed by police who fired tear gas, an AFP correspondent reported.

In a statement later Wednesday,&nbsp;Sudan's interior ministry said 52 police officers were wounded in clashes with protesters in several parts of Khartoum.&nbsp;

Also read | <a href="https://www.wionews.com/world/sudan-to-cut-government-spending-increase-social-spending-394218">Sudan to cut government spending, increase social spending</a>

Security forces also used tear gas against demonstrators who attempted to join the protests from Omdurman, the capital's twin city across the Nile.

In Kassala, in&nbsp;Sudan's east, dozens of protesters demanded justice for people killed in demonstrations that toppled autocratic president Omar al-Bashir in April 2019.

"Blood for blood, we will not accept compensation," some of them chanted.

Sudan&nbsp;has been led by a transitional civilian-military administration since August 2019.

The government has vowed to fix the country's economy, battered by decades of mismanagement, internal conflict and international sanctions under Bashir.

Also read |&nbsp;<a href="https://www.wionews.com/opinions/how-sudans-economic-crisis-had-a-role-in-protests-that-toppled-al-bashir-216685">How Sudan’s economic crisis had a role in protests that toppled al-Bashir</a>

On Wednesday, Prime Minister Abdalla Hamdok praised&nbsp;Sudan's people for their "patience" and "endurance".

"We are on the right track," the premier said in a televised speech after the IMF announcement of the debt relief deal.

Ahead of the protests, Sudanese authorities said they arrested 79 people suspected of links to Bashir's regime for allegedly planning violence.

Wednesday's demonstrations coincide with the anniversary of an Islamist-backed military coup that brought Bashir to power more than 30 years ago.

Hundreds of Sudanese protesters took to the streets of major cities on Wednesday to demand the government's resignation over IMF-backed economic reforms seen as too harsh, AFP correspondents said.

Hundreds of Sudanese protesters took to the streets of major cities on Wednesday to demand the government's resignation over IMF-backed economic reforms seen as too harsh, AFP correspondents said. "We want the fall of the regime" and "No to (IMF) policies", shouted demonstrators who massed outside the presidential palace in Khartoum. The protests erupted a day after the International Monetary Fund approved a $2.5 billion loan and debt relief deal that will see Sudan's external debt reduced by some $50 billion. Public discontent has mounted over the reforms that slashed subsidies on petrol and diesel, more than doubling their price. The dozens who had gathered in Khartoum burned tyres and brandished banners that read "Bread for the poor" before they were dispersed by police who fired tear gas, an AFP correspondent reported. In a statement later Wednesday, Sudan's interior ministry said 52 police officers were wounded in clashes with protesters in several parts of Khartoum. Also read | Sudan to cut government spending, increase social spending Security forces also used tear gas against demonstrators who attempted to join the protests from Omdurman, the capital's twin city across the Nile. In Kassala, in Sudan's east, dozens of protesters demanded justice for people killed in demonstrations that toppled autocratic president Omar al-Bashir in April 2019. "Blood for blood, we will not accept compensation," some of them chanted. Sudan has been led by a transitional civilian-military administration since August 2019. The government has vowed to fix the country's economy, battered by decades of mismanagement, internal conflict and international sanctions under Bashir. Also read | How Sudan’s economic crisis had a role in protests that toppled al-Bashir On Wednesday, Prime Minister Abdalla Hamdok praised Sudan's people for their "patience" and "endurance". "We are on the right track," the premier said in a televised speech after the IMF announcement of the debt relief deal. Ahead of the protests, Sudanese authorities said they arrested 79 people suspected of links to Bashir's regime for allegedly planning violence. Wednesday's demonstrations coincide with the anniversary of an Islamist-backed military coup that brought Bashir to power more than 30 years ago.

Sudan protesters demand govt resign over IMF-backed reforms

The International Monetary Fund (IMF) has approved a 2.5 billion dollars loan for Sudan. Watch this report to know more.

World Business Watch: Sudan approved for debt relief, $2.5 billion funding by IMF

The United States and other Group of Seven nations are considering reallocating $100 billion from the International Monetary Fund's warchest to help countries struggling to cope with the COVID-19 crisis, the White House said.

The issue will be on the table when G7 leaders discuss how to help steer the world's recovery from the coronavirus pandemic at a three-day summit in Cornwall, England, which began on Friday.

"The United States and our G7 partners are actively considering a global effort to multiply the impact of the proposed Special Drawing Rights (SDR) allocation to the countries most in need," the U.S. president's office said.

"At potentially up to $100 billion in size, the proposed effort would further support health needs – including vaccinations," it said, adding that it would help promote a more sustained and inclusive global recovery.

SDRs are the&nbsp;IMF's reserve asset and are exchangeable for dollars, euros, sterling, yen, and Chinese yuan or renminbi. Member states can loan or donate their SDR reserves to other countries for their use.

<a href="https://www.wionews.com/world/world-leaders-meet-at-g7-summit-amid-coronavirus-crisis-390883">Also Read |&nbsp;World leaders meet at G7 summit amid coronavirus crisis</a>

The United States, which has targeted the SDR allocation to be distributed around the "late (northern) summer," on Friday said: "We strongly support the effort to recycle SDRs to further support health needs."

The&nbsp;IMF&nbsp;had no immediate comment.

IMF&nbsp;Managing Director Kristalina Georgieva, who will speak virtually with G7 leaders this weekend, on Wednesday told a separate event that she expected the fund's governors to approve a $650 billion boost in SDRs in mid-August.

The global lender is continuing to study how best richer countries could donate or loan their reserves to benefit poorer nations. Details are expected in early autumn.

French President Emmanuel Macron on Thursday called on the other G7 nations to find an agreement on reallocating $100 billion in SDRs to African states.

World finance chiefs agreed in April to issue new SDRs and extend a debt-servicing freeze to help developing countries deal with the pandemic, although only $34 billion of the $650 billion in new reserves will be allocated to Africa since SDRs are issued according to the size of a member's holding in the&nbsp;IMF.

The United States and other Group of Seven nations are considering reallocating $100 billion from the International Monetary Fund's warchest to help countries struggling to cope with the COVID-19 crisis, the White House said.

The United States and other Group of Seven nations are considering reallocating $100 billion from the International Monetary Fund's warchest to help countries struggling to cope with the COVID-19 crisis, the White House said. The issue will be on the table when G7 leaders discuss how to help steer the world's recovery from the coronavirus pandemic at a three-day summit in Cornwall, England, which began on Friday. "The United States and our G7 partners are actively considering a global effort to multiply the impact of the proposed Special Drawing Rights (SDR) allocation to the countries most in need," the U.S. president's office said. "At potentially up to $100 billion in size, the proposed effort would further support health needs – including vaccinations," it said, adding that it would help promote a more sustained and inclusive global recovery. SDRs are the IMF's reserve asset and are exchangeable for dollars, euros, sterling, yen, and Chinese yuan or renminbi. Member states can loan or donate their SDR reserves to other countries for their use. Also Read | World leaders meet at G7 summit amid coronavirus crisis The United States, which has targeted the SDR allocation to be distributed around the "late (northern) summer," on Friday said: "We strongly support the effort to recycle SDRs to further support health needs." The IMF had no immediate comment. IMF Managing Director Kristalina Georgieva, who will speak virtually with G7 leaders this weekend, on Wednesday told a separate event that she expected the fund's governors to approve a $650 billion boost in SDRs in mid-August. The global lender is continuing to study how best richer countries could donate or loan their reserves to benefit poorer nations. Details are expected in early autumn. French President Emmanuel Macron on Thursday called on the other G7 nations to find an agreement on reallocating $100 billion in SDRs to African states. World finance chiefs agreed in April to issue new SDRs and extend a debt-servicing freeze to help developing countries deal with the pandemic, although only $34 billion of the $650 billion in new reserves will be allocated to Africa since SDRs are issued according to the size of a member's holding in the IMF.

US says G7 may reallocate $100 billion from IMF funds to COVID-ravaged nations

French President Emmanuel Macron said on Tuesday a summit in Paris on Africa financing had agreed to work towards persuading rich nations by October to reallocate $100 billion in IMF special drawing rights monetary reserves to African states.&nbsp;

Impoverished African economies must not be left behind in the post-pandemic economic recovery and a substantial financial package is needed to provide much-needed economic stimulus, African and European leaders concluded at a summit in Paris.&nbsp;

In the immediate term, that meant accelerating the COVID-19 vaccine rollout and creating the fiscal breathing room for African nations, which will face a spending shortfall of some $285 billion over the next two years, the summit communique showed.&nbsp;

The communique set out a two-pronged response based on addressing financing needs to support a sustainable, green recovery and the underpinning of private-sector-driven growth, but it was light on concrete commitments.&nbsp;

"This is a new start, a new deal for Africa," Senegalese President Macky Sall told reporters.&nbsp;

International Monetary Fund (IMF) chief Kristalina Georgieva said it was time to stem the 'dangerous divergence between advanced economies and developing countries, especially (in) Africa’. &nbsp;

Georgieva said the African continent's economic output would increase by only 3.2% in 2021, compared with 6% in the rest of the world.&nbsp;

Central to the talks was the question of how to reallocate IMF reserves (SDRs) that were earmarked for developed countries towards developing economies. &nbsp;

World finance chiefs agreed in April to boost SDRs by $650 billion and extend a debt-servicing freeze to help developing countries deal with the pandemic, although only $34 billion was to be allocated to Africa.&nbsp;

Macron said France had decided to redirect its SDRs and that there had been an accord to try to get rich nations by October to reallocate $100 billion to Africa.&nbsp;

"Our work in the next few weeks will be to make the same rate of effort as France, starting with the United States of America, and I know all the work that we will have to do with Congress and the executive, but I am confident," he told reporters.&nbsp;

Georgieva pledged to come up with a new allocation proposal by August.&nbsp;

"On the $100 billion, is it enough? Let's be very clear, no it is not enough. We have a financial gap just to catch up with the impact of Covid for the continent of Africa of $285 billion, she said. "It is genuinely an all-hands-on-deck situation."&nbsp;

"We have to make the private sector attracted to go into a risky environment by de-risking investments."&nbsp;

The summit was part of Macron's efforts to recast France's engagement in Africa, where it was once a colonial power, at a time when the continent faces a near $300 billion deficit by the end of 2023 while trying to recover from the downturn.&nbsp;

The African Development Bank forecasts that up to 39 million people could fall into poverty this year, with many African countries at risk of debt distress because of the pandemic.&nbsp;

(With inputs from agencies)&nbsp;

French President Emmanuel Macron said on Tuesday a summit in Paris on Africa financing had agreed to work towards persuading rich nations by October to reallocate $100 billion in IMF special drawing rights monetary reserves to African states.

French President Emmanuel Macron said on Tuesday a summit in Paris on Africa financing had agreed to work towards persuading rich nations by October to reallocate $100 billion in IMF special drawing rights monetary reserves to African states. Impoverished African economies must not be left behind in the post-pandemic economic recovery and a substantial financial package is needed to provide much-needed economic stimulus, African and European leaders concluded at a summit in Paris. In the immediate term, that meant accelerating the COVID-19 vaccine rollout and creating the fiscal breathing room for African nations, which will face a spending shortfall of some $285 billion over the next two years, the summit communique showed. The communique set out a two-pronged response based on addressing financing needs to support a sustainable, green recovery and the underpinning of private-sector-driven growth, but it was light on concrete commitments. "This is a new start, a new deal for Africa," Senegalese President Macky Sall told reporters. International Monetary Fund (IMF) chief Kristalina Georgieva said it was time to stem the 'dangerous divergence between advanced economies and developing countries, especially (in) Africa’. Georgieva said the African continent's economic output would increase by only 3.2% in 2021, compared with 6% in the rest of the world. Central to the talks was the question of how to reallocate IMF reserves (SDRs) that were earmarked for developed countries towards developing economies. World finance chiefs agreed in April to boost SDRs by $650 billion and extend a debt-servicing freeze to help developing countries deal with the pandemic, although only $34 billion was to be allocated to Africa. Macron said France had decided to redirect its SDRs and that there had been an accord to try to get rich nations by October to reallocate $100 billion to Africa. "Our work in the next few weeks will be to make the same rate of effort as France, starting with the United States of America, and I know all the work that we will have to do with Congress and the executive, but I am confident," he told reporters. Georgieva pledged to come up with a new allocation proposal by August. "On the $100 billion, is it enough? Let's be very clear, no it is not enough. We have a financial gap just to catch up with the impact of Covid for the continent of Africa of $285 billion, she said. "It is genuinely an all-hands-on-deck situation." "We have to make the private sector attracted to go into a risky environment by de-risking investments." The summit was part of Macron's efforts to recast France's engagement in Africa, where it was once a colonial power, at a time when the continent faces a near $300 billion deficit by the end of 2023 while trying to recover from the downturn. The African Development Bank forecasts that up to 39 million people could fall into poverty this year, with many African countries at risk of debt distress because of the pandemic. (With inputs from agencies)

France, African leaders push to redirect $100 billion in IMF SDR reserves by October 

The International Monetary Fund (IMF) has warned that Latin America's recovery from the pandemic crisis is lagging the rest of the world and the economy will not return to its pre-pandemic level until 2024.

IMF warns, Latin America's economy will be last to recover

Europe faces more risks to its economic recovery due to Covid-19 variants and delays in vaccination campaigns that threaten to prolong the health crisis, the IMF said on Wednesday.

That could create "social unrest and more medium-term scarring of economies if the crisis lingers," the International Monetary Fund warned, calling for more government support until the crisis has passed.

"This is not a call for a package that boosts spending indiscriminately and permanently, but for a well-targeted and temporary shot in the arm of both demand and supply,"&nbsp;said Alfred Kammer, director of the IMF's European department in a blog about the outlook.

The IMF sees European growth of 4.5 per cent this year, 0.2 points lower than the October forecast, followed by a 3.9 per cent expansion in 2022, according to the latest Regional Economic Outlook.

That would take the economy "back to its pre-pandemic level but not to the path expected before the pandemic."

"Reflecting the periodic infection waves and the pace of vaccinations, the economic recovery in Europe is still halting and uneven," Kammer wrote.

Additional spending of three per cent of GDP through next year could lift GDP by about two per cent by the end of 2022 and cut the impact of scarring by more than half, he said.&nbsp;

"The costs would pale in comparison to the benefits," he added.

The IMF forecasts assume vaccines will be "widely available" by mid-year, and Kammer said "the number one priority is to boost vaccine production." But policymakers "need to continue to provide emergency support to households and firms."

The Washington-based crisis lender credited the "unprecedented lifelines" to workers with helping tens of millions, but said those funds should shift to retraining programs to help workers find jobs in emerging industries.

"The faster the recovery, the less scarring people and businesses will suffer," the IMF said.

On the upside, the fund notes the potentially large beneficial effects of the European Union's "Next Generation" plan.

Europe faces more risks to its economic recovery due to Covid-19 variants and delays in vaccination campaigns that threaten to prolong the health crisis, the IMF said on Wednesday.

Europe faces more risks to its economic recovery due to Covid-19 variants and delays in vaccination campaigns that threaten to prolong the health crisis, the IMF said on Wednesday. That could create "social unrest and more medium-term scarring of economies if the crisis lingers," the International Monetary Fund warned, calling for more government support until the crisis has passed. "This is not a call for a package that boosts spending indiscriminately and permanently, but for a well-targeted and temporary shot in the arm of both demand and supply," said Alfred Kammer, director of the IMF's European department in a blog about the outlook. The IMF sees European growth of 4.5 per cent this year, 0.2 points lower than the October forecast, followed by a 3.9 per cent expansion in 2022, according to the latest Regional Economic Outlook. That would take the economy "back to its pre-pandemic level but not to the path expected before the pandemic." "Reflecting the periodic infection waves and the pace of vaccinations, the economic recovery in Europe is still halting and uneven," Kammer wrote. Additional spending of three per cent of GDP through next year could lift GDP by about two per cent by the end of 2022 and cut the impact of scarring by more than half, he said. "The costs would pale in comparison to the benefits," he added. The IMF forecasts assume vaccines will be "widely available" by mid-year, and Kammer said "the number one priority is to boost vaccine production." But policymakers "need to continue to provide emergency support to households and firms." The Washington-based crisis lender credited the "unprecedented lifelines" to workers with helping tens of millions, but said those funds should shift to retraining programs to help workers find jobs in emerging industries. "The faster the recovery, the less scarring people and businesses will suffer," the IMF said. On the upside, the fund notes the potentially large beneficial effects of the European Union's "Next Generation" plan.

Europe needs more short-term aid to counter continued Covid risks: IMF

The new wave of Covid-19 infections sweeping parts of India is "worrisome" and threatens the 12.5 per cent growth projection, an International Monetary Fund expert for the region said on Tuesday. 
 
Jonathan Otry, the Deputy Director of the IMF`s Asia Pacific Department, said that "the current surge in infections presents a worrisome downside risk revisions" for India which "has seen a more sizeable upward revision to 12 and a half per cent on account of continued normalisation of its economy and a more growth-friendly fiscal policy". 
 
In projections made before the current spike in Covid-19 cases and released last week, the IMF had raised its estimate of India`s gross domestic product (GDP) growth by 1 per cent from the January projection to the historically high rate of 12.5 per cent -- the highest in the world for large economies -- during this fiscal year. The growth was projected to moderate to 6.9 per cent next fiscal year. 
 
Otry said at a news conference that a faster vaccine rollout "will propel the economic recovery" around the region. 
 
For this strong international cooperation is needed to ensure adequate vaccine production and universal distribution at affordable prices, he said, praising India`s programmes. 
 
"In this respect, the efforts of China and India have been commendable. And we hope, both countries continue to make supplies available to other countries, while ensuring adequate supplies at home," he said. 
 
While the Covid-19 pandemic may adversely impact efforts in some areas to combat climate change, he said that India has pledged to meet the Paris Climate Agreement goals and is even likely to exceed its commitments. 
 
Otry also said that the recovery from the pandemic will be uneven across the Asia Pacific region. 
 
China`s economy is projected to grow by 8.4 per cent this year, the second-highest globally. Japan, in contrast, will have a growth rate of only 3.3 per cent. 
 
The rest of South Asia excluding India is also recovering despite the recent spike in infections because of higher than expected exports and remittances, he said. 
 
The IMF`s growth projection for the South Asia region is 11 per cent. 
 
Bangladesh is projected to grow by 5 per cent, Nepal 2.9 per cent, and Sri Lanka 4 per cent. 
 
Pakistan, which is listed by the IMF in the Middle East and Central Asia region, is projected to have a growth rate of 1.5 per cent. 
 
The two smallest South Asian countries are outliers in the growth projection for the region. 
 
The Maldives, with a population of only 531,000 and a GDP on just $5.6 billion, outperforms most countries with a growth projection of 18.9 per cent. 
 
Bhutan`s economy is, however, projected to continue shrinking, registering a negative growth rate of 1.9 per cent. (Bhutan`s population is 763,000 and GDP $2.5 billion.) 
 
Among steps to be taken to ensure a strong recovery, Otry called for actions against "zombie" companies and support for "dynamic entrants". 
 
He said "corporate debt vulnerabilities, especially among small and medium enterprises, need to be addressed". 
 
"Balance sheet repair" should be facilitated to "enable zombie firms to exit, and allow dynamic entrants to thrive", he said. 
 
"Insolvency frameworks need to be strengthened to allow non-viable firms to exit, while assuring adequate credit flow to productive firms, and facilitating fresh equity capital to help companies overcome debt overhangs and grow job opportunities," he added. 
 
Otry emphasised the role of trade in the recovery. 
 
"Easing of trade and technology tensions and facilitation of digital trade would also provide a welcome fillip to growth," he said. 
 
"To fulfil Asia`s potential for trade-led growth, restrictions that impede trade need to be reduced. These include tariffs and non-tariff barriers, such as quotas, subsidies, local content rules, and licensing requirements, where progress has stalled since the 1990s," he added.

The new wave of Covid-19 infections sweeping parts of India is "worrisome" and threatens the 12.5 per cent growth projection, an International Monetary Fund expert for the region said on Tuesday.

The new wave of Covid-19 infections sweeping parts of India is "worrisome" and threatens the 12.5 per cent growth projection, an International Monetary Fund expert for the region said on Tuesday. Jonathan Otry, the Deputy Director of the IMF`s Asia Pacific Department, said that "the current surge in infections presents a worrisome downside risk revisions" for India which "has seen a more sizeable upward revision to 12 and a half per cent on account of continued normalisation of its economy and a more growth-friendly fiscal policy". In projections made before the current spike in Covid-19 cases and released last week, the IMF had raised its estimate of India`s gross domestic product (GDP) growth by 1 per cent from the January projection to the historically high rate of 12.5 per cent -- the highest in the world for large economies -- during this fiscal year. The growth was projected to moderate to 6.9 per cent next fiscal year. Otry said at a news conference that a faster vaccine rollout "will propel the economic recovery" around the region. For this strong international cooperation is needed to ensure adequate vaccine production and universal distribution at affordable prices, he said, praising India`s programmes. "In this respect, the efforts of China and India have been commendable. And we hope, both countries continue to make supplies available to other countries, while ensuring adequate supplies at home," he said. While the Covid-19 pandemic may adversely impact efforts in some areas to combat climate change, he said that India has pledged to meet the Paris Climate Agreement goals and is even likely to exceed its commitments. Otry also said that the recovery from the pandemic will be uneven across the Asia Pacific region. China`s economy is projected to grow by 8.4 per cent this year, the second-highest globally. Japan, in contrast, will have a growth rate of only 3.3 per cent. The rest of South Asia excluding India is also recovering despite the recent spike in infections because of higher than expected exports and remittances, he said. The IMF`s growth projection for the South Asia region is 11 per cent. Bangladesh is projected to grow by 5 per cent, Nepal 2.9 per cent, and Sri Lanka 4 per cent. Pakistan, which is listed by the IMF in the Middle East and Central Asia region, is projected to have a growth rate of 1.5 per cent. The two smallest South Asian countries are outliers in the growth projection for the region. The Maldives, with a population of only 531,000 and a GDP on just $5.6 billion, outperforms most countries with a growth projection of 18.9 per cent. Bhutan`s economy is, however, projected to continue shrinking, registering a negative growth rate of 1.9 per cent. (Bhutan`s population is 763,000 and GDP $2.5 billion.) Among steps to be taken to ensure a strong recovery, Otry called for actions against "zombie" companies and support for "dynamic entrants". He said "corporate debt vulnerabilities, especially among small and medium enterprises, need to be addressed". "Balance sheet repair" should be facilitated to "enable zombie firms to exit, and allow dynamic entrants to thrive", he said. "Insolvency frameworks need to be strengthened to allow non-viable firms to exit, while assuring adequate credit flow to productive firms, and facilitating fresh equity capital to help companies overcome debt overhangs and grow job opportunities," he added. Otry emphasised the role of trade in the recovery. "Easing of trade and technology tensions and facilitation of digital trade would also provide a welcome fillip to growth," he said. "To fulfil Asia`s potential for trade-led growth, restrictions that impede trade need to be reduced. These include tariffs and non-tariff barriers, such as quotas, subsidies, local content rules, and licensing requirements, where progress has stalled since the 1990s," he added.

Covid surge in India 'worrisome', threatens growth prospects: IMF

The idea of forgiving debt held by poor countries in exchange for "green" investments gained ground this week during the spring meetings of the IMF and World Bank, with concrete proposals expected in time for a global climate summit this fall.

Low-income countries face a double crisis — they are under pressure to pay down their debt while also confronting environmental problems.

That makes them "highly, highly vulnerable," Kristalina Georgieva, managing director of the International Monetary Fund, said this week, adding that it thus "makes sense" for the world to pursue so-called "green debt swaps."&nbsp;

A World Bank spokeswoman underscored that point.

"The Covid-19 crisis has made it significantly harder for developing countries to tackle the rising risks posed by climate change" and environmental disasters, said the spokeswoman, who declined to be named.

With already tight budgets, these countries have had to use emergency financial assistance to address the severe impact of the pandemic and the resulting economic crisis.

"By enlarging the debt burdens of governments — which were already at record levels on the eve of the crisis — it has left them with fewer resources to invest in a recovery that will also put the planet on a more sustainable footing," the spokeswoman told AFP.

'Creative options'

A technical working group — bringing together representatives not only of the IMF and World Bank but also of the United Nations and the OECD — was launched this week to examine "creative options to help countries tackle these simultaneous challenges," the World Bank spokeswoman said.

"This work has only just begun," she said, "but we think a proactive approach is essential: we must look closely at how potential solutions to the challenges of climate and debt can be integrated to address the key development issues of our time."

While there is no timeline yet for announcing concrete measures, all parties involved are clearly pointing toward the COP26 climate summit to be held in November in the Scottish city of Glasgow.

"We are going to work with the World Bank. And by COP26 we will advance that option" of a debt swap, Georgieva said, adding that it will then be up to creditors and debtors to decide whether to take part.&nbsp;

For Thierry Deau, the founder and CEO of the Paris-based Meridiam group, which specializes in developing and financing infrastructure projects, if the green debt-swap option is pursued, it will have to be linked to clear "conditionalities" to ensure that debt relief in fact leads to the launching of green projects.

Job opportunities

"The primary responsibility there on this debt relief is between the countries that are on both sides," he said.&nbsp;"There's a lot of politeness about this topic, and I think we have to stop that and create real true partnerships."

The IMF and World Bank will also have to consider the plight of several island nations with middle-income economies that receive less economic support but face daunting environmental challenges.

Their heavily tourism-dependent economies have seen revenues dry up as the coronavirus pandemic severely curtails world travel.&nbsp;

At the same time, their low-lying territories are often the victims of extreme weather events, including devastating cyclones or hurricanes.

Georgieva said this week that vulnerability to climate shocks should be taken into account when the international agencies allocate financial aid.&nbsp;

She also stressed that countries launching "green" projects can see the added benefit of heightened employment.&nbsp;

"There are opportunities for job creation," she said. "Just take, for example, renewable energy -- seven jobs to one in the traditional coal energy sector," even if some training is required.

"Similarly, reforestation, taking care of land degradation, resilience to climate shocks, these are all labor-intensive activities," Georgieva said.&nbsp;

"Policymakers need to think about it now."

The idea of forgiving debt held by poor countries in exchange for "green" investments gained ground this week during the spring meetings of the IMF and World Bank, with concrete proposals expected in time for a global climate summit this fall.

The idea of forgiving debt held by poor countries in exchange for "green" investments gained ground this week during the spring meetings of the IMF and World Bank, with concrete proposals expected in time for a global climate summit this fall. Low-income countries face a double crisis — they are under pressure to pay down their debt while also confronting environmental problems. That makes them "highly, highly vulnerable," Kristalina Georgieva, managing director of the International Monetary Fund, said this week, adding that it thus "makes sense" for the world to pursue so-called "green debt swaps." A World Bank spokeswoman underscored that point. "The Covid-19 crisis has made it significantly harder for developing countries to tackle the rising risks posed by climate change" and environmental disasters, said the spokeswoman, who declined to be named. With already tight budgets, these countries have had to use emergency financial assistance to address the severe impact of the pandemic and the resulting economic crisis. "By enlarging the debt burdens of governments — which were already at record levels on the eve of the crisis — it has left them with fewer resources to invest in a recovery that will also put the planet on a more sustainable footing," the spokeswoman told AFP. 'Creative options' A technical working group — bringing together representatives not only of the IMF and World Bank but also of the United Nations and the OECD — was launched this week to examine "creative options to help countries tackle these simultaneous challenges," the World Bank spokeswoman said. "This work has only just begun," she said, "but we think a proactive approach is essential: we must look closely at how potential solutions to the challenges of climate and debt can be integrated to address the key development issues of our time." While there is no timeline yet for announcing concrete measures, all parties involved are clearly pointing toward the COP26 climate summit to be held in November in the Scottish city of Glasgow. "We are going to work with the World Bank. And by COP26 we will advance that option" of a debt swap, Georgieva said, adding that it will then be up to creditors and debtors to decide whether to take part. For Thierry Deau, the founder and CEO of the Paris-based Meridiam group, which specializes in developing and financing infrastructure projects, if the green debt-swap option is pursued, it will have to be linked to clear "conditionalities" to ensure that debt relief in fact leads to the launching of green projects. Job opportunities "The primary responsibility there on this debt relief is between the countries that are on both sides," he said. "There's a lot of politeness about this topic, and I think we have to stop that and create real true partnerships." The IMF and World Bank will also have to consider the plight of several island nations with middle-income economies that receive less economic support but face daunting environmental challenges. Their heavily tourism-dependent economies have seen revenues dry up as the coronavirus pandemic severely curtails world travel. At the same time, their low-lying territories are often the victims of extreme weather events, including devastating cyclones or hurricanes. Georgieva said this week that vulnerability to climate shocks should be taken into account when the international agencies allocate financial aid. She also stressed that countries launching "green" projects can see the added benefit of heightened employment. "There are opportunities for job creation," she said. "Just take, for example, renewable energy -- seven jobs to one in the traditional coal energy sector," even if some training is required. "Similarly, reforestation, taking care of land degradation, resilience to climate shocks, these are all labor-intensive activities," Georgieva said. "Policymakers need to think about it now."

IMF, World Bank begin push to swap debt relief for green projects

India, which is projected to grow at an impressive rate of 12.5 per cent this year, needs to grow at a much faster pace to make up for the unprecedented contraction of eight per cent that it clocked during the COVID-19 pandemic in 2020, according to a senior IMF official.

The International Monetary Fund Deputy Chief Economist, Petya Koeva Brooks, in an interview to PTI on Friday also made a strong case for an additional economic stimulus to address the impact of the pandemic on the country's economy.

"When it comes to India there was a major collapse of output last fiscal year and the number as you mentioned is eight.

"So, we are very glad to see the strong rebound this year with projected growth of 12.5 for fiscal year 21-22 and we are seeing also high-frequency indicators including PMI (Purchasing Managers' Index), and trade and more mobility indicators which give us a sense that there is a continued recovery in the first quarter of this year," she said.

That said, there are some recent emergencies of the new variants in the localised lockdowns that are seen as one of the threats to this recovery, Brooks noted.

On the recovery itself, when it comes to the level in terms of the level of output, we are expecting that level to return to the pre-crisis one from 2019 to this fiscal year. That is what we have in our projections.

"However, if you look at a concept of scarring, which just compares what the level of output would have been hadn't there been a crisis in 2024, which is the measure which we are using. Then at and compare where our current growth trajectory is for India that gap is much larger, Brooks said.

The gap, she said, which is eight per cent of GDP is significantly larger than what it is for the world as a whole.

"For the world as a whole it's about three (per cent), which is another way of saying that even though in the near term we have this real rebound, there's still scope in the coming years to see higher growth which would reduce and hopefully, eliminate that scarring, which we are currently expecting, the top IMF official said in response to a question.

"If we were to just think about the level of output that it was prior to being a pandemic then that catch happens this year, which is not surprising also given the very high level of the underlying high level of growth which India has. But again, if we compare it to the path of what it would have been without the pandemic then we are getting too many larger gaps there, she said.

Noting that the Indian government took several steps to address the COVID-19 crisis, Brooks said, We have seen policy responses, which have been coordinated and in several areas. We have seen that the fiscal support, the monetary easing as well as the liquidity and regulatory measures that were taken."

What makes sense is to maintain the focus on having that coordinated policy response because this is what's going to prevent long-term damage to the economy. Providing that support to small and medium-sized firms as well as vulnerable houses would be particularly important, she said.

Brooks said the IMF very much welcomes the measures that were announced by India during its budget. It is particularly supportive of maintaining the accommodative fiscal stance and also emphasising expenditures on health and infrastructure.

We estimate that the positive impact of the measures for this fiscal year is going to be of the order of point six percentage points on growth, she said, adding that several measures announced in the budget were in line of the IMF's advice.

Prominent among them are that there would not be a withdrawal of fiscal stimulus at the general government level and also that state governments would be given the temporary flexibility to go over their budget ceilings. And last, but not least, the fact that some of the other budget items on food subsidies were actually brought into the budget. Overall, the IMF is very supportive of this focus on growth.

At the same time, Brooks made a strong case for an additional economic stimulus.

We do think that additional fiscal stimulus would be helpful. Focusing that stimulus again on the most vulnerable is something that makes sense to us. We note that some of the income support schemes were not extended beyond November 2020 and such, she said.

Taking measures in that area would be particularly helpful as well as making sure that there's priority spending on education, the economist noted.

Last, but not least, also ensuring that there is a very concrete medium-term fiscal framework is an area where we can see some room for more work in that area, she said.

Now when it comes to monetary policy, we think that given the underlying slack in the economy, maintaining the accommodative monetary policy stance makes sense. This is what we understand is being planned at the moment.

This has been our long-standing recommendation that we see scope for additional policy measures to address the weaknesses in the financial sector, in the banking part in the non-bank part of the financial sector. We think that this is going to be particularly important as we come out of the crisis to have that efficient credit intermediation, which is going to allow the economy to grow, the IMF official said.

Responding to a question on the stimulus package, Brooks underscored the need to essentially have targeted support for households and for the firms that have been most affected is the most efficient and sensible way to provide that support.

India, which is projected to grow at an impressive rate of 12.5 per cent this year, needs to grow at a much faster pace to make up for the unprecedented contraction of eight per cent that it clocked during the COVID-19 pandemic in 2020, according to a senior IMF official.

India, which is projected to grow at an impressive rate of 12.5 per cent this year, needs to grow at a much faster pace to make up for the unprecedented contraction of eight per cent that it clocked during the COVID-19 pandemic in 2020, according to a senior IMF official. The International Monetary Fund Deputy Chief Economist, Petya Koeva Brooks, in an interview to PTI on Friday also made a strong case for an additional economic stimulus to address the impact of the pandemic on the country's economy. "When it comes to India there was a major collapse of output last fiscal year and the number as you mentioned is eight. "So, we are very glad to see the strong rebound this year with projected growth of 12.5 for fiscal year 21-22 and we are seeing also high-frequency indicators including PMI (Purchasing Managers' Index), and trade and more mobility indicators which give us a sense that there is a continued recovery in the first quarter of this year," she said. That said, there are some recent emergencies of the new variants in the localised lockdowns that are seen as one of the threats to this recovery, Brooks noted. On the recovery itself, when it comes to the level in terms of the level of output, we are expecting that level to return to the pre-crisis one from 2019 to this fiscal year. That is what we have in our projections. "However, if you look at a concept of scarring, which just compares what the level of output would have been hadn't there been a crisis in 2024, which is the measure which we are using. Then at and compare where our current growth trajectory is for India that gap is much larger, Brooks said. The gap, she said, which is eight per cent of GDP is significantly larger than what it is for the world as a whole. "For the world as a whole it's about three (per cent), which is another way of saying that even though in the near term we have this real rebound, there's still scope in the coming years to see higher growth which would reduce and hopefully, eliminate that scarring, which we are currently expecting, the top IMF official said in response to a question. "If we were to just think about the level of output that it was prior to being a pandemic then that catch happens this year, which is not surprising also given the very high level of the underlying high level of growth which India has. But again, if we compare it to the path of what it would have been without the pandemic then we are getting too many larger gaps there, she said. Noting that the Indian government took several steps to address the COVID-19 crisis, Brooks said, We have seen policy responses, which have been coordinated and in several areas. We have seen that the fiscal support, the monetary easing as well as the liquidity and regulatory measures that were taken." What makes sense is to maintain the focus on having that coordinated policy response because this is what's going to prevent long-term damage to the economy. Providing that support to small and medium-sized firms as well as vulnerable houses would be particularly important, she said. Brooks said the IMF very much welcomes the measures that were announced by India during its budget. It is particularly supportive of maintaining the accommodative fiscal stance and also emphasising expenditures on health and infrastructure. We estimate that the positive impact of the measures for this fiscal year is going to be of the order of point six percentage points on growth, she said, adding that several measures announced in the budget were in line of the IMF's advice. Prominent among them are that there would not be a withdrawal of fiscal stimulus at the general government level and also that state governments would be given the temporary flexibility to go over their budget ceilings. And last, but not least, the fact that some of the other budget items on food subsidies were actually brought into the budget. Overall, the IMF is very supportive of this focus on growth. At the same time, Brooks made a strong case for an additional economic stimulus. We do think that additional fiscal stimulus would be helpful. Focusing that stimulus again on the most vulnerable is something that makes sense to us. We note that some of the income support schemes were not extended beyond November 2020 and such, she said. Taking measures in that area would be particularly helpful as well as making sure that there's priority spending on education, the economist noted. Last, but not least, also ensuring that there is a very concrete medium-term fiscal framework is an area where we can see some room for more work in that area, she said. Now when it comes to monetary policy, we think that given the underlying slack in the economy, maintaining the accommodative monetary policy stance makes sense. This is what we understand is being planned at the moment. This has been our long-standing recommendation that we see scope for additional policy measures to address the weaknesses in the financial sector, in the banking part in the non-bank part of the financial sector. We think that this is going to be particularly important as we come out of the crisis to have that efficient credit intermediation, which is going to allow the economy to grow, the IMF official said. Responding to a question on the stimulus package, Brooks underscored the need to essentially have targeted support for households and for the firms that have been most affected is the most efficient and sensible way to provide that support.

India needs to grow faster to make up for contraction during Covid-19: IMF

International Monetary Fund (IMF) on Tuesday raised its growth forecast for Indian economy by 100 basis points to 12.5 per cent for fiscal year 2021-22. India is the only country expected to register a double-digit growth this fiscal.

India's growth projection raised to 12.5% for FY22 by IMF

Considering a hard year that Kenya has had due to the existing financial constraints and the added pressure of the coronavirus pandemic, the IMF has approved a $2.34 billion aid package for the country.

The IMF believes this aid package “address the urgent need to reduce debt vulnerabilities”. The funds will be divided over a period of 38 months, starting with an immediate disbursement of nearly $307.5 million “usable for budget support”.

“Kenya was hit hard at the onset by the Covid-19 pandemic,” the IMF said. However, it also highlighted the country’s “forceful policy response” that helped it reach an economic recovery in 2021 after a small contraction in GDP in 2020.

The crisis, however, has also worsened “pre-existing fiscal vulnerabilities”.

“Kenya's debt remains sustainable, but it is at high risk of debt distress,” IMF’s statement read, adding that “fiscal and balance-of-payments financing needs remain sizable over the medium term.”

This aid package has been praised as “a strong signal of support and confidence” by the institute’s deputy managing director, Antoinette Sayeh, who also stressed that the package is “subject to notable risks, including from uncertainty about the path of the pandemic.”

Considering a hard year that Kenya has had due to the existing financial constraints and the added pressure of the coronavirus pandemic, the IMF has approved a $2.

Considering a hard year that Kenya has had due to the existing financial constraints and the added pressure of the coronavirus pandemic, the IMF has approved a $2.34 billion aid package for the country. The IMF believes this aid package “address the urgent need to reduce debt vulnerabilities”. The funds will be divided over a period of 38 months, starting with an immediate disbursement of nearly $307.5 million “usable for budget support”. “Kenya was hit hard at the onset by the Covid-19 pandemic,” the IMF said. However, it also highlighted the country’s “forceful policy response” that helped it reach an economic recovery in 2021 after a small contraction in GDP in 2020. The crisis, however, has also worsened “pre-existing fiscal vulnerabilities”. “Kenya's debt remains sustainable, but it is at high risk of debt distress,” IMF’s statement read, adding that “fiscal and balance-of-payments financing needs remain sizable over the medium term.” This aid package has been praised as “a strong signal of support and confidence” by the institute’s deputy managing director, Antoinette Sayeh, who also stressed that the package is “subject to notable risks, including from uncertainty about the path of the pandemic.”

IMF approves $2.3 billion aid package for Kenya amid coronavirus crisis

The coronavirus pandemic has worsened long-standing inequalities around the world, which left unaddressed could undermine economic stability and lead to unrest, the IMF warned on Thursday.

Poorest families have been hit particularly hard, and the damage to education could last for years, the International Monetary Fund said in a report released ahead of next week's Spring meetings.

The findings show that the warnings fund economists sounded last year have come to pass.

"Covid-19 has exposed and exacerbated preexisting inequalities in incomes and access to basic public services, such as health care and vaccination, both within and across countries," the report said.

"Disruptions to education threaten social mobility by leaving long-lasting effects on children and youth, especially those from poorer households."

Increasing reliance on digital work and schooling worsen the impact, making it harder for low-skilled workers to find jobs.

"Against this backdrop, societies may experience rising polarization, erosion of trust in government, or social unrest," the IMF said.&nbsp;

The report — released a day after US President Joe Biden proposed raising corporate taxes to pay for a massive infrastructure and jobs program — called for raising some taxes and improving tax collection to provide revenue for an improved social safety net.&nbsp;

Authors David Amaglobeli, Vitor Gaspar, and Paolo Mauro in a blog post called for governments to "give everyone a fair shot at prosperity," by improving access to health care, vaccinations, education and good jobs.

They suggested countries could rely more on property and inheritance taxes, increase the tax rate for the wealthiest earners, and eliminate loopholes as well as "modernizing corporate income taxation."&nbsp;

Governments also could consider "temporary Covid-19 recovery contributions" for high-income households, they said.

Using these funds for key social programs can have "a powerful effect" at a time when "up to six million children in emerging market and developing economies could drop out of school in 2021, with lifelong adverse consequences."

"If governments increased spending on education by one percent of GDP, for example, they could reduce the gap in enrollment rates between the richest and the poorest families by almost one-third," the authors said.

The coronavirus pandemic has worsened long-standing inequalities around the world, which left unaddressed could undermine economic stability and lead to unrest, the IMF warned on Thursday.

The coronavirus pandemic has worsened long-standing inequalities around the world, which left unaddressed could undermine economic stability and lead to unrest, the IMF warned on Thursday. Poorest families have been hit particularly hard, and the damage to education could last for years, the International Monetary Fund said in a report released ahead of next week's Spring meetings. The findings show that the warnings fund economists sounded last year have come to pass. "Covid-19 has exposed and exacerbated preexisting inequalities in incomes and access to basic public services, such as health care and vaccination, both within and across countries," the report said. "Disruptions to education threaten social mobility by leaving long-lasting effects on children and youth, especially those from poorer households." Increasing reliance on digital work and schooling worsen the impact, making it harder for low-skilled workers to find jobs. "Against this backdrop, societies may experience rising polarization, erosion of trust in government, or social unrest," the IMF said. The report — released a day after US President Joe Biden proposed raising corporate taxes to pay for a massive infrastructure and jobs program — called for raising some taxes and improving tax collection to provide revenue for an improved social safety net. Authors David Amaglobeli, Vitor Gaspar, and Paolo Mauro in a blog post called for governments to "give everyone a fair shot at prosperity," by improving access to health care, vaccinations, education and good jobs. They suggested countries could rely more on property and inheritance taxes, increase the tax rate for the wealthiest earners, and eliminate loopholes as well as "modernizing corporate income taxation." Governments also could consider "temporary Covid-19 recovery contributions" for high-income households, they said. Using these funds for key social programs can have "a powerful effect" at a time when "up to six million children in emerging market and developing economies could drop out of school in 2021, with lifelong adverse consequences." "If governments increased spending on education by one percent of GDP, for example, they could reduce the gap in enrollment rates between the richest and the poorest families by almost one-third," the authors said.

Spend more, tax wealthy: IMF warns pandemic could worsen inequality, fuel social unrest

The International Monetary Fund said on Wednesday it approved a $500 million disbursement to Pakistan for budget support after the IMF Executive Board completed delayed reviews of Pakistan`s $6 billion loan program.

The IMF said in a statement that the latest payment brought total disbursements under the Extended Fund Facility to $2 billion since the program was first approved in July 2019.

"The Pakistani authorities have continued to make satisfactory progress under the Fund-supported program, which has been an important policy anchor during an unprecedented period," IMF Deputy Managing Director Antoinette Sayeh said in a statement.

"While the Covid-19 pandemic continues to pose challenges, the authorities’ policies have been critical in supporting the economy and saving lives and livelihoods," she said.

The disbursement was made after Pakistan cleared up an issue with data on government guarantees dating back to the 2016 fiscal year that had been reported inaccurately and put the government in non-compliance with the program.

The IMF said Pakistani authorities had taken strong corrective actions to address institutional shortcomings, including a lack of interagency coordination, to correct the issue.

The International Monetary Fund said on Wednesday it approved a $500 million disbursement to Pakistan for budget support after the IMF Executive Board completed delayed reviews of Pakistan`s $6 billion loan program.

The International Monetary Fund said on Wednesday it approved a $500 million disbursement to Pakistan for budget support after the IMF Executive Board completed delayed reviews of Pakistan`s $6 billion loan program. The IMF said in a statement that the latest payment brought total disbursements under the Extended Fund Facility to $2 billion since the program was first approved in July 2019. "The Pakistani authorities have continued to make satisfactory progress under the Fund-supported program, which has been an important policy anchor during an unprecedented period," IMF Deputy Managing Director Antoinette Sayeh said in a statement. "While the Covid-19 pandemic continues to pose challenges, the authorities’ policies have been critical in supporting the economy and saving lives and livelihoods," she said. The disbursement was made after Pakistan cleared up an issue with data on government guarantees dating back to the 2016 fiscal year that had been reported inaccurately and put the government in non-compliance with the program. The IMF said Pakistani authorities had taken strong corrective actions to address institutional shortcomings, including a lack of interagency coordination, to correct the issue.

IMF approves $500 million disbursement to Pakistan

The world`s financial leaders are expected on Friday to agree to continue supportive measures for the global economy and look to boost the International Monetary Fund`s resources so it can help poorer countries fight off the effects of the pandemic.

Finance ministers and central bank governors of the world`s top 20 economies, called the G20, held a video-conference on Friday. The global response to the economic havoc wreaked by the coronavirus was at top of the agenda.

In the first comments by a participating policymaker, the European Union`s economics commissioner Paolo Gentiloni said the meeting had been "good", with consensus on the need for a common effort on global COVID vaccinations.

"Avoid premature withdrawal of supportive fiscal policy" and "progress towards agreement on digital and minimal taxation" he said in a Tweet, signalling other areas of apparent accord.

A news conference by Italy, which holds the annual G20 presidency, is scheduled for 17.15 (1615 GMT)

The meeting comes as the United States is readying $1.9 trillion in fiscal stimulus and the European Union has already put together more than 3 trillion euros ($3.63 trillion) to keep its economies going despite COVID-19 lockdowns.

But despite the large sums, problems with the global rollout of vaccines and the emergence of new variants of the coronavirus mean the future of the recovery remains uncertain.

German Finance Minister Olaf Scholz warned earlier on Friday that recovery was taking longer than expected and it was too early to roll back support.

"Contrary to what had been hoped for, we cannot speak of a full recovery yet. For us in the G20 talks, the central task remains to lead our countries through the severe crisis," Scholz told reporters ahead of the virtual meeting.

"We must not scale back the support programmes too early and too quickly. That`s what I`m also going to campaign for among my G20 colleagues today," he said.

BIDEN DEBUT

Hopes for constructive discussions at the meeting are high among G20 countries because it is the first since Joe Biden, who vowed to rebuild cooperation in international bodies, became U.S. president.

While the IMF sees the U.S. economy returning to pre-crisis levels at the end of this year, it may take Europe until the middle of 2022 to reach that point.

The recovery is fragile elsewhere too - factory activity in China grew at the slowest pace in five months in January, hit by a wave of domestic coronavirus infections, and in Japan fourth quarter growth slowed from the previous quarter with new lockdowns clouding the outlook.

"The initially hoped-for V-shaped recovery is now increasingly looking rather more like a long U-shaped recovery. That is why the stabilization measures in almost all G20 states have to be maintained in order to continue supporting the economy," a G20 official said.

But while the richest economies can afford to stimulate an economic recovery by borrowing more on the market, poorer ones would benefit from being able to tap credit lines from the IMF -- the global lender of last resort.

To give itself more firepower, the Fund proposed last year to increase its war chest by $500 billion in the IMF`s own currency called the Special Drawing Rights (SDR), but the idea was blocked by then U.S. President Donald Trump.

Scholz said the change of administration in Washington on Jan. 20 improved the prospects for more IMF resources. He pointed to a letter sent by U.S. Treasury Secretary Janet Yellen to G20 colleagues on Thursday, which he described as a positive sign also for efforts to reform global tax rules.

Civil society groups, religious leaders and some Democratic lawmakers in the U.S. Congress have called for a much larger allocation of IMF resources, of $3 trillion, but sources familiar with the matter said they viewed such a large move as unlikely for now.

The G20 may also agree to extend a suspension of debt servicing for poorest countries by another six months.

The world`s financial leaders are expected on Friday to agree to continue supportive measures for the global economy and look to boost the International Monetary Fund`s resources so it can help poorer countries fight off the effects of the pandemic.

The world`s financial leaders are expected on Friday to agree to continue supportive measures for the global economy and look to boost the International Monetary Fund`s resources so it can help poorer countries fight off the effects of the pandemic. Finance ministers and central bank governors of the world`s top 20 economies, called the G20, held a video-conference on Friday. The global response to the economic havoc wreaked by the coronavirus was at top of the agenda. In the first comments by a participating policymaker, the European Union`s economics commissioner Paolo Gentiloni said the meeting had been "good", with consensus on the need for a common effort on global COVID vaccinations. "Avoid premature withdrawal of supportive fiscal policy" and "progress towards agreement on digital and minimal taxation" he said in a Tweet, signalling other areas of apparent accord. A news conference by Italy, which holds the annual G20 presidency, is scheduled for 17.15 (1615 GMT) The meeting comes as the United States is readying $1.9 trillion in fiscal stimulus and the European Union has already put together more than 3 trillion euros ($3.63 trillion) to keep its economies going despite COVID-19 lockdowns. But despite the large sums, problems with the global rollout of vaccines and the emergence of new variants of the coronavirus mean the future of the recovery remains uncertain. German Finance Minister Olaf Scholz warned earlier on Friday that recovery was taking longer than expected and it was too early to roll back support. "Contrary to what had been hoped for, we cannot speak of a full recovery yet. For us in the G20 talks, the central task remains to lead our countries through the severe crisis," Scholz told reporters ahead of the virtual meeting. "We must not scale back the support programmes too early and too quickly. That`s what I`m also going to campaign for among my G20 colleagues today," he said. BIDEN DEBUT Hopes for constructive discussions at the meeting are high among G20 countries because it is the first since Joe Biden, who vowed to rebuild cooperation in international bodies, became U.S. president. While the IMF sees the U.S. economy returning to pre-crisis levels at the end of this year, it may take Europe until the middle of 2022 to reach that point. The recovery is fragile elsewhere too - factory activity in China grew at the slowest pace in five months in January, hit by a wave of domestic coronavirus infections, and in Japan fourth quarter growth slowed from the previous quarter with new lockdowns clouding the outlook. "The initially hoped-for V-shaped recovery is now increasingly looking rather more like a long U-shaped recovery. That is why the stabilization measures in almost all G20 states have to be maintained in order to continue supporting the economy," a G20 official said. But while the richest economies can afford to stimulate an economic recovery by borrowing more on the market, poorer ones would benefit from being able to tap credit lines from the IMF -- the global lender of last resort. To give itself more firepower, the Fund proposed last year to increase its war chest by $500 billion in the IMF`s own currency called the Special Drawing Rights (SDR), but the idea was blocked by then U.S. President Donald Trump. Scholz said the change of administration in Washington on Jan. 20 improved the prospects for more IMF resources. He pointed to a letter sent by U.S. Treasury Secretary Janet Yellen to G20 colleagues on Thursday, which he described as a positive sign also for efforts to reform global tax rules. Civil society groups, religious leaders and some Democratic lawmakers in the U.S. Congress have called for a much larger allocation of IMF resources, of $3 trillion, but sources familiar with the matter said they viewed such a large move as unlikely for now. The G20 may also agree to extend a suspension of debt servicing for poorest countries by another six months.

G20 to show united front on support for global economic recovery, cash for IMF

The World Bank has selected former Senegal finance minister Makhtar Diop to lead the agency responsible for private sector finance at a critical time for the global recovery. He would be the first African to lead the International Finance Corporation (IFC) which leverages financing to support private firms in developing nations.

Diop, an economist who studied in Britain, worked in finance before entering government. He was named Senegal's minister of Economy and Finance in April 2000, a position he held for just over a year.

The announcement comes just days after the World Trade Organisation selected Nigeria's former finance minister Ngozi Okonjo-Iweala as its new director-general, the first African and first woman to serve in that role.

<a href="https://www.wionews.com/world/a-black-woman-will-lead-the-wto-for-the-first-time-361823">Also read |&nbsp;A Black woman will lead the WTO for the first time</a>

Diop's "skills at IFC will help the World Bank Group continue our rapid response to the global crisis and help build a green, resilient, inclusive recovery," World Bank President David Malpass said.

Diop, currently World Bank vice president for infrastructure and previously vice president for Africa, will take his new post at the IFC on March 1.

His key responsibilities will be to "deepen and energise" what it called the IFC's 3.0 strategy to mobilize private capital, increase climate and gender investments and support countries facing conflict.

 
&nbsp;

The World Bank has selected former Senegal finance minister Makhtar Diop to lead the agency responsible for private sector finance at a critical time for the global recovery.

The World Bank has selected former Senegal finance minister Makhtar Diop to lead the agency responsible for private sector finance at a critical time for the global recovery. He would be the first African to lead the International Finance Corporation (IFC) which leverages financing to support private firms in developing nations. Diop, an economist who studied in Britain, worked in finance before entering government. He was named Senegal's minister of Economy and Finance in April 2000, a position he held for just over a year. The announcement comes just days after the World Trade Organisation selected Nigeria's former finance minister Ngozi Okonjo-Iweala as its new director-general, the first African and first woman to serve in that role. Also read | A Black woman will lead the WTO for the first time Diop's "skills at IFC will help the World Bank Group continue our rapid response to the global crisis and help build a green, resilient, inclusive recovery," World Bank President David Malpass said. Diop, currently World Bank vice president for infrastructure and previously vice president for Africa, will take his new post at the IFC on March 1. His key responsibilities will be to "deepen and energise" what it called the IFC's 3.0 strategy to mobilize private capital, increase climate and gender investments and support countries facing conflict.

Former Senegal finance minister to head IFC, World Bank declares

Days before the Myanmar coup unfolded, the International Monetary Fund sent $350 Million to Myanmar. The entire amount was sent in cash, to help the country battle COVID-19 outbreak. Now, what IMF can do to withdraw the funds?

IMF sent $350 Mn cash as COVID-19 financing program to Myanmar before coup

For weeks, farmers' unions have been protesting in and outside the nation’s capital, demanding the withdrawal of recently passed legislation they say, without evidence, was designed to benefit corporates.&nbsp; 
 
<a href="https://www.wionews.com/india-news/farmers-run-riot-in-delhi-on-republic-day-359493">Also read | Farmers run riot in Delhi on Republic Day</a> 
 
There have been multiple rounds of talks with the government but the stalemate continues.

A faction of farmers believe that these bills will severely impoverish them but the International Monetary Fund (IMF) has a different point of view.

IMF's Chief Economist Gita Gopinath has said that India's recently-enacted agriculture laws have the potential to increase farmers' income.

"Indian agriculture is in need of reforms. There are multiple areas where the reforms are needed, including infrastructure," the Chief Economist of the Washington-based global financial institution said on Tuesday.

The three agri laws, enacted in September last year, have been projected by the Indian government as major reforms in the agriculture sector that will remove middlemen and allow farmers to sell their products anywhere in the country.

Gopinath, in response to a question on the new farm laws, said: "These particular farm laws were in the area of marketing. It was widening the market for farmers. Being able to sell to multiple outlets besides the Mandis without having to pay a tax. And this had the potential to raise, in our view, farmers' incomes."

"That said, every time reform is put in place, there are transition costs. One has to make sure and pay close attention that it's not harming vulnerable farmers, to make sure that the social safety net is provided. Clearly, there is a discussion right now and we'll see what comes out if it," she said.

Thousands of farmers in India, mostly from Punjab, Haryana and western Uttar Pradesh, have been camping at several Delhi border points since November 28 last year, demanding a repeal of the farm laws and a legal guarantee on Minimum Support Price (MSP) for their crops.

So far, 11 rounds of talks have taken place between the government and farmer leaders with both sides hardening their positions.

In the last round of talks, the government offered to suspend the laws for 1-1.5 years and form a joint committee to find solutions, in return for protesting farmers going back to their respective homes from Delhi borders.

However, farmer leaders said that they would settle for nothing less than a complete repeal of the laws, which they find pro-corporate, and a legal guarantee for the procurement of crops at government-fixed MSP.

The Samkyukt Kisan Morcha, an umbrella body of 41 farmer unions, is leading the protest against the three central farm laws at several border points of Delhi.

Tuesday's tractor parade in New Delhi, which was to highlight the demands of the farmer unions to repeal three new Agri laws, dissolved into anarchy on the streets of the city as tens of thousands of protesters broke through barriers, fought with police, overturned vehicles and hoisted a religious flag from the ramparts of the iconic Red Fort.

The Kisan Morcha has disassociated itself from those who indulged in violence during the tractor parade and alleged that some "antisocial elements" infiltrated their otherwise peaceful movement.

(With inputs from agencies)

For weeks, farmers' unions have been protesting in and outside the nation’s capital, demanding the withdrawal of recently passed legislation they say, without evidence, was designed to benefit corporates.

For weeks, farmers' unions have been protesting in and outside the nation’s capital, demanding the withdrawal of recently passed legislation they say, without evidence, was designed to benefit corporates. Also read | Farmers run riot in Delhi on Republic Day There have been multiple rounds of talks with the government but the stalemate continues. A faction of farmers believe that these bills will severely impoverish them but the International Monetary Fund (IMF) has a different point of view. IMF's Chief Economist Gita Gopinath has said that India's recently-enacted agriculture laws have the potential to increase farmers' income. "Indian agriculture is in need of reforms. There are multiple areas where the reforms are needed, including infrastructure," the Chief Economist of the Washington-based global financial institution said on Tuesday. The three agri laws, enacted in September last year, have been projected by the Indian government as major reforms in the agriculture sector that will remove middlemen and allow farmers to sell their products anywhere in the country. Gopinath, in response to a question on the new farm laws, said: "These particular farm laws were in the area of marketing. It was widening the market for farmers. Being able to sell to multiple outlets besides the Mandis without having to pay a tax. And this had the potential to raise, in our view, farmers' incomes." "That said, every time reform is put in place, there are transition costs. One has to make sure and pay close attention that it's not harming vulnerable farmers, to make sure that the social safety net is provided. Clearly, there is a discussion right now and we'll see what comes out if it," she said. Thousands of farmers in India, mostly from Punjab, Haryana and western Uttar Pradesh, have been camping at several Delhi border points since November 28 last year, demanding a repeal of the farm laws and a legal guarantee on Minimum Support Price (MSP) for their crops. So far, 11 rounds of talks have taken place between the government and farmer leaders with both sides hardening their positions. In the last round of talks, the government offered to suspend the laws for 1-1.5 years and form a joint committee to find solutions, in return for protesting farmers going back to their respective homes from Delhi borders. However, farmer leaders said that they would settle for nothing less than a complete repeal of the laws, which they find pro-corporate, and a legal guarantee for the procurement of crops at government-fixed MSP. The Samkyukt Kisan Morcha, an umbrella body of 41 farmer unions, is leading the protest against the three central farm laws at several border points of Delhi. Tuesday's tractor parade in New Delhi, which was to highlight the demands of the farmer unions to repeal three new Agri laws, dissolved into anarchy on the streets of the city as tens of thousands of protesters broke through barriers, fought with police, overturned vehicles and hoisted a religious flag from the ramparts of the iconic Red Fort. The Kisan Morcha has disassociated itself from those who indulged in violence during the tractor parade and alleged that some "antisocial elements" infiltrated their otherwise peaceful movement. (With inputs from agencies)

India’s new agriculture laws have potential to raise farm income: IMF's Gita Gopinath

The IMF on Tuesday projected an impressive 11.5 per cent growth rate for India in 2021, making the country the only major economy of the world to register a double-digit growth this year amidst the coronavirus pandemic.

The International Monetary Fund's growth projections for India in its latest World Economic Outlook Update released on Tuesday reflected a strong rebound in the economy, which is estimated to have contracted by eight per cent in 2020 due to the pandemic.

In its latest update, the IMF projected a 11.5 per cent growth rate for India in 2021. This makes India the only major economy of the world to register a double-digit growth in 2021, it said.

China is next with 8.1 per cent growth in 2021 followed by Spain (5.9 per cent) and France (5.5 per cent).

Revising its figures, the IMF said that in 2020, the Indian economy is estimated to have contracted by eight per cent. China is the only major country which registered a positive growth rate of 2.3 per cent in 2020.

India's economy, the IMF said, is projected to grow by 6.8 per cent in 2022 and that of China by 5.6 per cent.

With the latest projections, India regains the tag of the fastest developing economies of the world.

IMF Chief Economist Gita Gopinath, during a virtual press conference to release the WEO update, said that India has somewhat a faster pace of recovery, but cumulatively by the end of 2022, it is nine per cent below its pre-pandemic projected level.

"Cumulatively by the end of 2022, India is still nine per cent below its pre pandemic projected level,"&nbsp;Gopinath said.

"We are seeing India come back to its 2019 levels and 2021, but it's still below. Why do we have these upgrades (in IMF's growth projections for India)....because the activity and mobility particularly came back much faster than expected in India. We have not seen another wave,"&nbsp;Gopinath said.

"In fact, we are seeing a very strong decline in cases, which is again a bit different from other parts of the world. So, these factors, including what we're seeing in terms of high frequency indicators, point to have some what faster pace of recovery. But again, there is still some distance to go,"&nbsp;Gopinath said.

Early this month, IMF Managing Director Kristalina Georgieva had said that India actually has taken very decisive action, very decisive steps to deal with the pandemic and to deal with the economic consequences of it.

India, she said, went for a very dramatic lockdown for a country of this size of population with people clustered so closely together. And then India moved to more targeted restrictions and lockdowns.

The IMF on Tuesday projected an impressive 11.5 per cent growth rate for India in 2021, making the country the only major economy of the world to register a double-digit growth this year amidst the coronavirus pandemic.

The IMF on Tuesday projected an impressive 11.5 per cent growth rate for India in 2021, making the country the only major economy of the world to register a double-digit growth this year amidst the coronavirus pandemic. The International Monetary Fund's growth projections for India in its latest World Economic Outlook Update released on Tuesday reflected a strong rebound in the economy, which is estimated to have contracted by eight per cent in 2020 due to the pandemic. In its latest update, the IMF projected a 11.5 per cent growth rate for India in 2021. This makes India the only major economy of the world to register a double-digit growth in 2021, it said. China is next with 8.1 per cent growth in 2021 followed by Spain (5.9 per cent) and France (5.5 per cent). Revising its figures, the IMF said that in 2020, the Indian economy is estimated to have contracted by eight per cent. China is the only major country which registered a positive growth rate of 2.3 per cent in 2020. India's economy, the IMF said, is projected to grow by 6.8 per cent in 2022 and that of China by 5.6 per cent. With the latest projections, India regains the tag of the fastest developing economies of the world. IMF Chief Economist Gita Gopinath, during a virtual press conference to release the WEO update, said that India has somewhat a faster pace of recovery, but cumulatively by the end of 2022, it is nine per cent below its pre-pandemic projected level. "Cumulatively by the end of 2022, India is still nine per cent below its pre pandemic projected level," Gopinath said. "We are seeing India come back to its 2019 levels and 2021, but it's still below. Why do we have these upgrades (in IMF's growth projections for India)....because the activity and mobility particularly came back much faster than expected in India. We have not seen another wave," Gopinath said. "In fact, we are seeing a very strong decline in cases, which is again a bit different from other parts of the world. So, these factors, including what we're seeing in terms of high frequency indicators, point to have some what faster pace of recovery. But again, there is still some distance to go," Gopinath said. Early this month, IMF Managing Director Kristalina Georgieva had said that India actually has taken very decisive action, very decisive steps to deal with the pandemic and to deal with the economic consequences of it. India, she said, went for a very dramatic lockdown for a country of this size of population with people clustered so closely together. And then India moved to more targeted restrictions and lockdowns.

IMF projects 11.5% growth rate for India in 2021

IMF chief has praised India for taking "very decisive" steps to tackle the coronavirus pandemic and the "economic consequences" it brought, hoping the country to do more this year to push forward the economy.&nbsp;

"When I called on everybody to stay tuned for January 26, that applies very much to India. You would see a picture in our update that is less bad. Why? Because the country actually has taken very decisive action, very decisive steps to deal with the pandemic and to deal with the economic consequences of it," IMF Managing Director Kristalina Georgieva was quoted as saying by the news agency PTI.&nbsp;

Watch |&nbsp;

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/world-business-watch-tesla-marks-india-entry-with-new-office-in-bengaluru-356383/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Sharing her thoughts on Thursday on global media roundtable, Georgieva also predicted a comparatively better outlook for India in the upcoming World Economic Update because of the steps taken.&nbsp;

Also read | <a href="https://www.wionews.com/india-news/potential-to-represent-significant-step-forward-for-agricultural-reforms-imf-praises-indias-farm-bill-356857">Potential to represent significant step forward for agricultural reforms: IMF praises India's farm bill</a>

She also praised India for targeted lockdown and said that the mobility indicators in India are nearly in the country what they were pre-Covid-19, highlighting that the country has seen an economic revival "significantly".&nbsp;

"Then India moved to more targeted restrictions and lockdowns. What we see is that that transition, combined with policy support, seems to have worked well. Why? Because if you look at mobility indicators, we are almost where we were before COVID in India, meaning that economic activities have been revitalised quite significantly," the IMF chief said.

She also lauded the government's support on the monetary policy, saying that it was better than the average of emerging markets and urged the administration to do more if possible.&nbsp;

"What the government has done on the monetary policy and the fiscal policy side is commendable. It is actually slightly above the average for emerging markets. Emerging markets on average have provided six per cent of the GDP. In India, this is slightly above that. Good for India is that there is still space to do more….. If you can do more, please do," Georgieva added.&nbsp; 
&nbsp;

IMF chief has praised India for taking "very decisive" steps to tackle the coronavirus pandemic and the "economic consequences" it brought, hoping the country to do more this year to push forward the economy.

IMF chief has praised India for taking "very decisive" steps to tackle the coronavirus pandemic and the "economic consequences" it brought, hoping the country to do more this year to push forward the economy. "When I called on everybody to stay tuned for January 26, that applies very much to India. You would see a picture in our update that is less bad. Why? Because the country actually has taken very decisive action, very decisive steps to deal with the pandemic and to deal with the economic consequences of it," IMF Managing Director Kristalina Georgieva was quoted as saying by the news agency PTI. Watch | Sharing her thoughts on Thursday on global media roundtable, Georgieva also predicted a comparatively better outlook for India in the upcoming World Economic Update because of the steps taken. Also read | Potential to represent significant step forward for agricultural reforms: IMF praises India's farm bill She also praised India for targeted lockdown and said that the mobility indicators in India are nearly in the country what they were pre-Covid-19, highlighting that the country has seen an economic revival "significantly". "Then India moved to more targeted restrictions and lockdowns. What we see is that that transition, combined with policy support, seems to have worked well. Why? Because if you look at mobility indicators, we are almost where we were before COVID in India, meaning that economic activities have been revitalised quite significantly," the IMF chief said. She also lauded the government's support on the monetary policy, saying that it was better than the average of emerging markets and urged the administration to do more if possible. "What the government has done on the monetary policy and the fiscal policy side is commendable. It is actually slightly above the average for emerging markets. Emerging markets on average have provided six per cent of the GDP. In India, this is slightly above that. Good for India is that there is still space to do more….. If you can do more, please do," Georgieva added.

IMF chief praises India for taking 'decisive' steps to tackle Covid-19

The International Monetary Fund on Friday lowered its 2021 growth forecast for China to 7.9 percent, following a year of "significant human and economic costs" inflicted by the Covid-19 crisis.

The figure is slightly below the 8.2 percent the IMF earlier predicted, although China has been pegged as the only major economy likely to expand in the face of the coronavirus.

After a record contraction in the first three months last year due to unprecedented lockdowns and factory closures, the world's number-two economy has since bounced back.

But the 1.9 percent full-year growth for 2020 that the IMF maintains, if confirmed, will be its worst showing since 1976, just before the start of its economic reform era.

"The Chinese economy continues its fast recovery from the pandemic, helped by a strong containment effort and swift policy actions to mitigate the impact of the crisis," said the IMF.

"However, growth is still unbalanced as the recovery has relied heavily on public support while private consumption is lagging," it added.

With increased spending to support its economic recovery, China's general government deficit is projected to rise to 18.2 percent of GDP in 2020, up from 12.6 percent the year before.

China's economy is adjusting to the "pandemic normal", with help from technology and digitalisation of services, but the IMF cautioned that activity is expected to remain below capacity over the medium term.

The warning comes as certain sectors ranging from hospitality to restaurants remain affected by restrictions.

"Until end-2021, some restrictions and voluntary social distancing will continue to dampen person-to-person services activity," said the IMF's report.

The International Monetary Fund on Friday lowered its 2021 growth forecast for China to 7.9 percent, following a year of "significant human and economic costs" inflicted by the Covid-19 crisis.

The International Monetary Fund on Friday lowered its 2021 growth forecast for China to 7.9 percent, following a year of "significant human and economic costs" inflicted by the Covid-19 crisis. The figure is slightly below the 8.2 percent the IMF earlier predicted, although China has been pegged as the only major economy likely to expand in the face of the coronavirus. After a record contraction in the first three months last year due to unprecedented lockdowns and factory closures, the world's number-two economy has since bounced back. But the 1.9 percent full-year growth for 2020 that the IMF maintains, if confirmed, will be its worst showing since 1976, just before the start of its economic reform era. "The Chinese economy continues its fast recovery from the pandemic, helped by a strong containment effort and swift policy actions to mitigate the impact of the crisis," said the IMF. "However, growth is still unbalanced as the recovery has relied heavily on public support while private consumption is lagging," it added. With increased spending to support its economic recovery, China's general government deficit is projected to rise to 18.2 percent of GDP in 2020, up from 12.6 percent the year before. China's economy is adjusting to the "pandemic normal", with help from technology and digitalisation of services, but the IMF cautioned that activity is expected to remain below capacity over the medium term. The warning comes as certain sectors ranging from hospitality to restaurants remain affected by restrictions. "Until end-2021, some restrictions and voluntary social distancing will continue to dampen person-to-person services activity," said the IMF's report.

IMF lowers China growth forecast to 7.9% for 2021

China will prioritise stability in monetary policy in 2021, and any steps to exit stimulus measures will have a small impact on the economy, the Xinhua news agency on Friday quoted central bank governor Yi Gang as saying.

The central bank will use various policy tools to keep liquidity reasonably ample and ensure that the growth of broad money supply and total social financing basically matches nominal economic growth, Yi was quoted as saying.

China will provide more financial support to small firms, technological innovation and green development, Yi added. 
"In 2021, monetary policy should prioritise stability to maintain ... sustainability," Yi said.

The central bank had said on Wednesday it would make its monetary policy flexible, targeted and appropriate in 2021, focusing on supporting small firms.

The bank has rolled out a raft of measures, including cuts in interest rates and reserve ratios since early-2020 to support the virus-hit economy.

But it has shifted to a steadier stance in recent months and kept its benchmark lending rate, the loan prime rate, unchanged since May.

Policy sources have said that the central bank will scale back support for the economy in 2021 and cool credit growth but that fears of derailing a recovery from a pandemic-induced slump and debt defaults are likely to prevent it from tightening any time soon.

Yi said any steps to exit stimulus measures will have a small impact on the economy this year because the central bank had refrained from adopting zero or negative interest rates.

While the ratio of China`s overall debt level increased last year as the pandemic dealt a blow to the economy, the debt ratio is likely to return to a basically stable track this year.

The rise in the ratio of China`s total debt to gross domestic product has started to slow since the third quarter of last year, Yi added without elaborating.

The Chinese Academy of Social Sciences, a government think tank, sees the macro leverage ratio jumping by about 30 percentage points in 2020 to over 270%.

Yi said China will continue to let the market play a decisive role in setting the yuan`s exchange rate in 2021, but it will keep the yuan basically stable.

The yuan was on course for its best week in two months, despite fresh measures rolled out by the central bank to ease capital inflows and slow the currency`s rally.

The currency has gained up nearly 1% against the greenback in the first week of the new year, building on a near 7% rise in 2020.

The central bank will push interest rate reforms to improve the transmission of its loan prime rate (LPR) to bank lending rates, and further liberalise deposit rates, Yi added.

China will also step up financial support for green development, Yi said, with measures including improving systems for green finance standards, developing green finance products and strengthening international cooperation in the sector.

China will prioritise stability in monetary policy in 2021, and any steps to exit stimulus measures will have a small impact on the economy, the Xinhua news agency on Friday quoted central bank governor Yi Gang as saying.

China will prioritise stability in monetary policy in 2021, and any steps to exit stimulus measures will have a small impact on the economy, the Xinhua news agency on Friday quoted central bank governor Yi Gang as saying. The central bank will use various policy tools to keep liquidity reasonably ample and ensure that the growth of broad money supply and total social financing basically matches nominal economic growth, Yi was quoted as saying. China will provide more financial support to small firms, technological innovation and green development, Yi added. "In 2021, monetary policy should prioritise stability to maintain ... sustainability," Yi said. The central bank had said on Wednesday it would make its monetary policy flexible, targeted and appropriate in 2021, focusing on supporting small firms. The bank has rolled out a raft of measures, including cuts in interest rates and reserve ratios since early-2020 to support the virus-hit economy. But it has shifted to a steadier stance in recent months and kept its benchmark lending rate, the loan prime rate, unchanged since May. Policy sources have said that the central bank will scale back support for the economy in 2021 and cool credit growth but that fears of derailing a recovery from a pandemic-induced slump and debt defaults are likely to prevent it from tightening any time soon. Yi said any steps to exit stimulus measures will have a small impact on the economy this year because the central bank had refrained from adopting zero or negative interest rates. While the ratio of China`s overall debt level increased last year as the pandemic dealt a blow to the economy, the debt ratio is likely to return to a basically stable track this year. The rise in the ratio of China`s total debt to gross domestic product has started to slow since the third quarter of last year, Yi added without elaborating. The Chinese Academy of Social Sciences, a government think tank, sees the macro leverage ratio jumping by about 30 percentage points in 2020 to over 270%. Yi said China will continue to let the market play a decisive role in setting the yuan`s exchange rate in 2021, but it will keep the yuan basically stable. The yuan was on course for its best week in two months, despite fresh measures rolled out by the central bank to ease capital inflows and slow the currency`s rally. The currency has gained up nearly 1% against the greenback in the first week of the new year, building on a near 7% rise in 2020. The central bank will push interest rate reforms to improve the transmission of its loan prime rate (LPR) to bank lending rates, and further liberalise deposit rates, Yi added. China will also step up financial support for green development, Yi said, with measures including improving systems for green finance standards, developing green finance products and strengthening international cooperation in the sector.

China central bank will prioritise monetary policy stability in 2021

Data is the new gold has become a common phrase these days. Turns out, a few researchers at the International Monetary Fund agree.

Mega companies are now under radar for how they use user data. &nbsp;In a blog post for the IMF, four researchers put forward findings from a paper in the works which looks at the relationship between finance and tech, and how it is expected to grow.

Also read:&nbsp;<a href="http://13.235.153.162/business-economy/indias-economy-to-shrink-103-china-to-expand-19-this-year-imf-337061" hreflang="en">India's economy to shrink 10.3%, China to expand 1.9% this year: IMF</a>

Prepare yourself! The researchers claimed that one’s browsing history, purchase history, and search patterns should be used to decide the credit score of every user. They believe this would determine a way more accurate credit rating than it does right now.

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/imf-tells-g20-countries-to-keep-spending-on-covid-19-crisis-340022/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

They also ascertained that such a model would allow greater lending for borrowers which would have been denied for other reasons by traditional banks.

Fortunately, they don’t have sinister ideas in their minds, but simply believe that banking system as it exists right now faces a serious threat from tech companies like Facebook, Google, and Apple. These companies are facing more scrutiny across the globe for they use our data. 
 
Researchers found that such companies have a lot more access to soft-information, and that message based platforms could replace physical banks.

Also read:&nbsp;<a href="http://13.235.153.162/india-news/gdp-in-most-countries-to-recover-to-pre-pandemic-levels-by-2022-imf-335038" hreflang="en">GDP in most countries to recover to pre-pandemic levels by 2022: IMF</a> 
 
The logic behind this is that lenders really too heavily on hard data, which may paint a picture grimmer than reality for the borrower. But if the lender had access to browsing history, interests, and google searches - they would be able to ascertain the true value of lending money to borrowers!

The researchers did mention the privacy and policy shortcomings and worries that are part of such kind of policies. The study is still in its pilot phases, and perhaps soon, the researchers could pinpoint to a mechanism which would make this possible. Until then, fear not, and browse away!

Data is the new gold has become a common phrase these days. Turns out, a few researchers at the International Monetary Fund agree. Mega companies are now under radar for how they use user data.

Data is the new gold has become a common phrase these days. Turns out, a few researchers at the International Monetary Fund agree. Mega companies are now under radar for how they use user data. In a blog post for the IMF, four researchers put forward findings from a paper in the works which looks at the relationship between finance and tech, and how it is expected to grow. Also read: India's economy to shrink 10.3%, China to expand 1.9% this year: IMF Prepare yourself! The researchers claimed that one’s browsing history, purchase history, and search patterns should be used to decide the credit score of every user. They believe this would determine a way more accurate credit rating than it does right now. They also ascertained that such a model would allow greater lending for borrowers which would have been denied for other reasons by traditional banks. Fortunately, they don’t have sinister ideas in their minds, but simply believe that banking system as it exists right now faces a serious threat from tech companies like Facebook, Google, and Apple. These companies are facing more scrutiny across the globe for they use our data. Researchers found that such companies have a lot more access to soft-information, and that message based platforms could replace physical banks. Also read: GDP in most countries to recover to pre-pandemic levels by 2022: IMF The logic behind this is that lenders really too heavily on hard data, which may paint a picture grimmer than reality for the borrower. But if the lender had access to browsing history, interests, and google searches - they would be able to ascertain the true value of lending money to borrowers! The researchers did mention the privacy and policy shortcomings and worries that are part of such kind of policies. The study is still in its pilot phases, and perhaps soon, the researchers could pinpoint to a mechanism which would make this possible. Until then, fear not, and browse away!

IMF thinks your browsing history should be used to determine your credit score

India's economy, severely affected by the coronavirus pandemic, is gradually recovering, the International Monetary Fund said on Thursday.

Indian economy is gradually recovering: IMF

The IMF fund programme for cash-strapped Pakistan may not be back on tracks in a formal way very soon as the authorities in the country struggle with difficult political and economic conditions, a media report said on Friday.

The International Monetary Fund Executive board approved a three-year, USD 6 billion loan package for Pakistan in July last year to rein in mounting debts and stave off a looming balance of payments crisis, in exchange for tough austerity measures, the Dawn newspaper reported.

However, the programme has been in limbo since January this year and a second quarterly review of the 39-month facility could not be completed.

"The IMF fund programme for Pakistan may not be back on tracks in a formal way very soon as the authorities in the country struggle with difficult political and economic conditions," the report said.

While the two sides are currently involved in setting timelines for revised structural benchmarks, the government wants some nascent feel-good factor in some economic indicators to take root before the IMF's usually contractionary fiscal and monetary stances come into play, the report said.

Pakistan approached the IMF in August 2018 for a bailout package after Prime Minister Imran Khan's government took over.

Despite loans from China, Saudi Arabia and the UAE, Prime Minister Khan's government was forced to turn to the IMF due to mounting economic problems amidst the COVID-19 pandemic.

In the same direction, according to informed sources, the government wants to extend the support package for construction to continue until June, instead of its expiry in December, as it is driving the industrial sector activities and growth in related areas while foreign exchange reserves and exchange rate are in comfortable position owing to better remittances.

Special Secretary and spokesperson of Finance Department Kamran Ali Afzal said consultations with the IMF were taking place on a daily basis, sometimes twice a day, on structural benchmarks and their timings.

He agreed that approval of two key bills relating to the National Electric Power Regulatory Authority (NEPRA) and the State Bank of Pakistan (SBP) would become "prior actions"&nbsp;and a way forward on power sector reforms and revenue generation would be necessary for "restoration of the programme in a formal way".

His understanding was the two laws would become prior actions because these were not related to COVID-19, but power sector reforms and revenue side items could be readjusted as they were affected by the pandemic and remained key challenges.

He said slippage on structural benchmarks under the IMF programme had to become a prior action in subsequent review "unless waiver is given by the fund".

Replying to a question, he said the formal review mission of the fund would be arranged once these advisory and consultative discussions took a clear direction.

Afzal said the second wave of the coronavirus had put the country in a difficult situation, otherwise things were moving in the right direction.

He said the revenue collection had grown by 4.7 per cent in four months and ?concrete signs of recovery are emerging? like in the shape of improvement in large scale manufacturing and some crops but it was too early to believe that aggregate growth was also emerging.

Afzal said that not only the IMF but also other lenders like the World Bank and Asian Development Bank were supportive of the government in passing through difficult times and their engagements in advisory roles were positive.

He said the IMF had extended a USD 1.4 billion rapid financing instrument soon after COVID-19 broke out early this year, the World Bank advanced its loan programmes and so did the ADB and Asian Infrastructure Development Bank.&nbsp;

The IMF fund programme for cash-strapped Pakistan may not be back on tracks in a formal way very soon as the authorities in the country struggle with difficult political and economic conditions, a media report said on Friday.

The IMF fund programme for cash-strapped Pakistan may not be back on tracks in a formal way very soon as the authorities in the country struggle with difficult political and economic conditions, a media report said on Friday. The International Monetary Fund Executive board approved a three-year, USD 6 billion loan package for Pakistan in July last year to rein in mounting debts and stave off a looming balance of payments crisis, in exchange for tough austerity measures, the Dawn newspaper reported. However, the programme has been in limbo since January this year and a second quarterly review of the 39-month facility could not be completed. "The IMF fund programme for Pakistan may not be back on tracks in a formal way very soon as the authorities in the country struggle with difficult political and economic conditions," the report said. While the two sides are currently involved in setting timelines for revised structural benchmarks, the government wants some nascent feel-good factor in some economic indicators to take root before the IMF's usually contractionary fiscal and monetary stances come into play, the report said. Pakistan approached the IMF in August 2018 for a bailout package after Prime Minister Imran Khan's government took over. Despite loans from China, Saudi Arabia and the UAE, Prime Minister Khan's government was forced to turn to the IMF due to mounting economic problems amidst the COVID-19 pandemic. In the same direction, according to informed sources, the government wants to extend the support package for construction to continue until June, instead of its expiry in December, as it is driving the industrial sector activities and growth in related areas while foreign exchange reserves and exchange rate are in comfortable position owing to better remittances. Special Secretary and spokesperson of Finance Department Kamran Ali Afzal said consultations with the IMF were taking place on a daily basis, sometimes twice a day, on structural benchmarks and their timings. He agreed that approval of two key bills relating to the National Electric Power Regulatory Authority (NEPRA) and the State Bank of Pakistan (SBP) would become "prior actions" and a way forward on power sector reforms and revenue generation would be necessary for "restoration of the programme in a formal way". His understanding was the two laws would become prior actions because these were not related to COVID-19, but power sector reforms and revenue side items could be readjusted as they were affected by the pandemic and remained key challenges. He said slippage on structural benchmarks under the IMF programme had to become a prior action in subsequent review "unless waiver is given by the fund". Replying to a question, he said the formal review mission of the fund would be arranged once these advisory and consultative discussions took a clear direction. Afzal said the second wave of the coronavirus had put the country in a difficult situation, otherwise things were moving in the right direction. He said the revenue collection had grown by 4.7 per cent in four months and ?concrete signs of recovery are emerging? like in the shape of improvement in large scale manufacturing and some crops but it was too early to believe that aggregate growth was also emerging. Afzal said that not only the IMF but also other lenders like the World Bank and Asian Development Bank were supportive of the government in passing through difficult times and their engagements in advisory roles were positive. He said the IMF had extended a USD 1.4 billion rapid financing instrument soon after COVID-19 broke out early this year, the World Bank advanced its loan programmes and so did the ADB and Asian Infrastructure Development Bank.

IMF programme for Pakistan unlikely to be back on track soon, report says

The IMF last month forecast a 2020 global contraction of 4.4 per cent and a return to growth of 5.2 per cent in 2021

IMF tells G20 countries to ‘keep spending’ on Covid-19 crisis

The International Monetary Fund(IMF)&nbsp;warned on Wednesday that Asia would witness sharper-than-expected contraction in economic activity amid the coronavirus <a href="https://www.wionews.com/world/pandemic-downturn-offers-path-to-address-climate-change-imf-333245">pandemic</a>.

<a href="https://www.wionews.com/business-economy/imfs-debt-restructuring-should-help-countries-overcome-fiscal-stress-nirmala-sitharaman-335437">Also Read:&nbsp;IMF's debt restructuring should help countries overcome fiscal stress, says&nbsp;Nirmala Sitharaman</a>

"Fear of infection and social distancing measures are dimming consumer confidence and will keep economic activity below capacity until a vaccine is developed," an <a href="https://www.wionews.com/india-news/gdp-in-most-countries-to-recover-to-pre-pandemic-levels-by-2022-imf-335038">IMF</a> report said.

IMF said next year's growth will be below par in Asia especially in those countries which are dependent on tourism.

The international body said Asia's economy may contract 2.2 per cent this year due to a slump in economic activity in Malaysia, Philippines and <a href="https://www.wionews.com/india-news/modis-aatmanirbhar-bharat-important-initiative-imf-330233">India</a>.&nbsp;

The IMF warned that India's economy is likely to shrink 10.3 per cent this year even as forecast China's economy to expand 1.9 per cent even as it said Asia's economy is likely to grow 6.9 per cent next year.

"With the pandemic seemingly far from over, policy support should be sustained and, in some cases, increased," the <a href="https://www.wionews.com/india-news/further-fiscal-stimulus-warranted-in-india-says-imf-326694">IMF</a> said, adding,"full arsenal of policy support is needed that includes steps to help households and businesses cope with structural changes caused by COVID-19 such as permanent job losses in industries like tourism."

The IMF had earlier urged the Middle East and North African countries to accelerate reforms and diversify their economies amid the coronavirus pandemic as it projected the economies of the MENA region to shrink by five per cent this year.

The region which is rich in oil may continue to experience downturn in oil prices with the average price of oil expected to be $41.69 a barrel this year and $46.70 a barrel in 2021, down from $57-$64 average in 2019, the IMF forecast highlighted.

The International Monetary Fund(IMF) warned on Wednesday that Asia would witness sharper-than-expected contraction in economic activity amid the coronavirus pandemic.

The International Monetary Fund(IMF) warned on Wednesday that Asia would witness sharper-than-expected contraction in economic activity amid the coronavirus pandemic. Also Read: IMF's debt restructuring should help countries overcome fiscal stress, says Nirmala Sitharaman "Fear of infection and social distancing measures are dimming consumer confidence and will keep economic activity below capacity until a vaccine is developed," an IMF report said. IMF said next year's growth will be below par in Asia especially in those countries which are dependent on tourism. The international body said Asia's economy may contract 2.2 per cent this year due to a slump in economic activity in Malaysia, Philippines and India. The IMF warned that India's economy is likely to shrink 10.3 per cent this year even as forecast China's economy to expand 1.9 per cent even as it said Asia's economy is likely to grow 6.9 per cent next year. "With the pandemic seemingly far from over, policy support should be sustained and, in some cases, increased," the IMF said, adding,"full arsenal of policy support is needed that includes steps to help households and businesses cope with structural changes caused by COVID-19 such as permanent job losses in industries like tourism." The IMF had earlier urged the Middle East and North African countries to accelerate reforms and diversify their economies amid the coronavirus pandemic as it projected the economies of the MENA region to shrink by five per cent this year. The region which is rich in oil may continue to experience downturn in oil prices with the average price of oil expected to be $41.69 a barrel this year and $46.70 a barrel in 2021, down from $57-$64 average in 2019, the IMF forecast highlighted.

India's economy to shrink 10.3%, China to expand 1.9% this year: IMF

The International Monetary Fund slashed this year's economic forecast for Asia, reflecting a sharper-than-expected contraction in countries like India, a sign the coronavirus pandemic continues to take a heavy toll on the region.

World Business Watch: IMF cuts Asia's growth forecast; Pandemic-driven risks for Asian nations

IMF Chief Economist Gita Gopinath has predicted a deep global recession. The IMF has recommended that countries with high debt should tax the rich. Palki Sharma Upadhyay tells you what's driving IMF's recommendations.

Gravitas: Why IMF wants countries to tax the rich

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