IMF Managing Director Kristalina Georgieva’s Remarks at Caixin Summit

IMF News, November 13, 2020

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Priority: "to defeat the virus, defeat it everywhere."
Durable exit from the health crisis is necessary for a sustainable recovery.
Actions needed:
- Protect people while the virus persists.
- Ensure vaccines and treatments are available everywhere.
China’s role and progress:
- "As a result of very determined domestic measures, the Chinese economy is going to be one of the very few that will finish 2020 with positive economic growth."
- IMF projections for China: "1.9% growth for this year and 8.2% for next year."
- China committed to make vaccines and treatments "global public goods" and joined efforts to accelerate vaccine delivery for all people.
Observation: "This crisis teaches us that we are only as strong as our weakest link."

Core message: "do not withdraw fiscal policy support and monetary policy support prematurely."
China: praised for "strong in early actions -- and also in continuing these actions until we see the health crisis in the rearview mirror."
Support for low-income countries:
- China contributed to IMF concessional lending capacity.
- "47 of the 81 countries that have benefited from financial support from the IMF are low-income countries who are benefiting from concessional finance."
- "China also joined us in extending debt relief to our 29 poorest members."
Multilateral debt initiatives:
- Endorsement of the G-20 Debt Service Suspension Initiative (DSSI): "I urge all creditors everywhere to embrace this initiative."
- Support for the G-20 Common Framework for debt resolution and engagement with China on solutions for heavily indebted countries.
- Statement: "Debt restructuring in some cases is a necessity."

Guiding principle: public investments supporting recovery should "not [reproduce] the economy of yesterday but shaping the economy of tomorrow."
Three investment priorities:
- Investment in people: "education, health, social protection" to build resilience.
- Investment in green infrastructure: "build a low-carbon, climate-resilient economy for tomorrow."
- China commitment noted: "China’s commitment to go carbon-neutral by 2060."
- Investment in digital transformation: ensure accelerated digital change "benefits everybody" and tackles inequalities via "equal access to the opportunities of tomorrow."

Trade remains "the engine of growth" and important going forward.
Challenge: reconcile that "some benefit from global trade, while others see their jobs evaporating."
Priority: make trade "work for everyone," with an expectation that "China will play its important role in this regard."

Call for "determined collective action" domestically and globally to recover from the recession.
Hope for 2021: "a year not only of economic recovery but of economic transformation" that is "greener, smarter, and more inclusive."
Closing wish: for 2021 to be "the year of transformation that brings us to a better world, for us, but most importantly for our children and our grandchildren."

IMF Managing Director Kristalina Georgieva’s Remarks at Caixin Summit, November 12, 2020.