## Transcript of the 2020 Annual Meetings IMFC Press Conference

_IMF News, October 15, 2020_

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## Bibliographic details
- Published: October 15, 2020

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### Meeting outcomes and overarching assessment
- Date: October 15, 2020.
- IMFC assessment: Conditions remain extraordinary; exceptional policies continue to be called for.
- Pandemic status and human impact:
  - COVID‑19 has already taken the lives of more than 1 million people worldwide.
  - The World Economic Outlook highlights that close to 90 million people could fall into extreme poverty this year.
- Recovery characterization: Partial, uneven, and marked by significant uncertainty.
- Central principle of policy: Protecting people — described as "saving lives and livelihoods."

### Core policy priorities endorsed by the IMFC
- Continue extraordinary policy responses tailored to country‑specific circumstances and needs.
- Fiscal policy:
  - Appropriately targeted fiscal measures are essential to protect lives and limit longer‑run social and economic costs.
  - Caution against premature withdrawal of support; "Pulling the plug too soon risks serious, self‑inflicted harm."
- Monetary policy:
  - Complementary monetary support alongside fiscal measures, recognizing countries have different levels of monetary space.
- Structural reform and growth:
  - Emphasis on achieving strong, sustainable, balanced, and inclusive growth.
  - Structural reforms to lift growth, employment, and productivity.
- Public investment focus:
  - Public investment, especially in green projects and digital infrastructure, can create millions of new jobs and boost productivity and incomes.

### Debt, financing, and IMF role
- Global public debt projection: Global public debt is projected to reach a record high of 100 percent of GDP in 2021.
- IMFC and G20 deliverables endorsed:
  - Agreement to create the common framework for handling sovereign debt treatments beyond the Debt Service Suspension Initiative (DSSI).
  - Extension by the G20 of the Debt Service Suspension Initiative for at least another six months from end of 2020, with the option to extend further if necessary.
- Private sector participation: Further private sector participation in debt relief remains an outstanding issue.
- IMF response and financing:
  - Core IMF crisis response measures initiated six months earlier remain intact.
  - Debt relief has been extended another six months for the poorest countries.
  - Support for expanding IMF concessional lending resources and facilitating timely sovereign debt resolution.
  - Emphasis that IMF must be adequately resourced and capable of offering concessional facilities for countries without market access.
- Guidance on managing elevated debt:
  - For many countries, urgent action is required now; for others, debt should be addressed over the medium term.
  - Fiscal consolidation should be growth‑friendly when withdrawal of extraordinary measures becomes appropriate.
  - Where debt is unsustainable, decisive and early debt restructuring and orderly, principle‑based processes are advised.

### International cooperation and vaccines
- International cooperation deemed essential for research, development, manufacturing, and distribution of COVID‑19 diagnostics, therapeutics, and vaccines to be equitable and affordable.
- Potential global economic payoff: Fast progress on vaccines everywhere could add almost $9 trillion to global income by 2025 and help narrow income gaps between richer and poorer nations.

### Country examples and regional implications
- China:
  - IMF upgraded China's growth projection for this year to 1.9 percent.
  - Projection for next year: 8.2 percent growth in China (corrected figure).
  - Drivers: Decisive health measures and fiscal and monetary stimulus; manufacturing recovering faster than contact services.
  - Implications: Positive impulse for countries exporting commodities, economies linked through global value chains, and global confidence.
- Japan:
  - Japan recognized for leadership in investment in health, universal health coverage, and support to IMF concessional financing and debt relief.
  - Japan announced financial support: US$10 million for a capacity development initiative to help countries build institutions and policies, including debt management.
- United States:
  - Past decisive U.S. fiscal and monetary actions provided positive global spillovers and liquidity that helped emerging markets access finance.
  - IMF message: Sustain lifelines for businesses and workers; avoid premature withdrawal of support. The U.S. has fiscal space to continue support.

### Emerging markets, low‑income, and middle‑income country challenges
- Heterogeneous circumstances:
  - Some emerging market countries entered the crisis with high or rising debt; others had limited fiscal space but used available resources.
  - Many low‑income countries lack market access and rely on multilateral institutions like the IMF and World Bank.
- Policy recommendations:
  - Maintain targeted support during crisis; later transition to growth‑friendly fiscal consolidation.
  - Ensure IMF is well‑resourced to provide concessional facilities and crisis support.
  - Encourage orderly, principle‑based debt restructuring where necessary; IMF to play a key role conducting debt sustainability analysis.

### Notable figures and exact numeric references cited
- Date of press conference: October 15, 2020.
- Lives lost to COVID‑19 (as stated): more than 1 million people worldwide.
- People who could fall into extreme poverty this year: close to 90 million people.
- Global public debt projection: 100 percent of GDP in 2021.
- China's growth projection for this year: 1.9 percent.
- China's growth projection for next year (corrected): 8.2 percent.
- Potential global income addition with fast vaccine progress: almost $9 trillion by 2025.
- Japan's announced financial support: US$10 million.

*Transcript of the 2020 Annual Meetings IMFC Press Conference, IMF Communications Department, October 15, 2020.*

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## References

- [https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva](https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva)
- [PRESS CENTER](http://presscenter.imf.org/)
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_Source: https://www.imf.org/en/news/articles/2020/10/16/tr101520-transcript-of-the-2020-annual-meetings-imfc-press-conference_