## Fostering a Fair Recovery

_IMF News, April 7, 2021_

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**Canonical URL:** [Fostering a Fair Recovery](https://www.imf.org/en/news/articles/2021/04/07/sp-fostering-a-fair-recovery)

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## Bibliographic details
- Authors: Kristalina Georgieva
- Published: April 7, 2021

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### Introduction and outlook
- Event: Opening Remarks for the Spring Meetings Press Conference by Kristalina Georgieva, IMF Managing Director, Washington, DC, April 7, 2021.
- Global growth forecasts:
  - 6 percent for this year.
  - 4.4 percent in 2022.
- Recovery context:
  - Recovery underway after the worst global recession since the second world war.
  - Exceptional and coordinated fiscal and monetary actions limited the contraction; without these measures the global contraction last year would have been three times worse.
  - The outlook is brighter due to vaccine distribution and further policy support, especially in the United States.
- Risks and uncertainties:
  - Economic fortunes are diverging; a small number of advanced and emerging market economies, led by the U.S. and China, are powering ahead while weaker and poorer countries lag.
  - High uncertainty from new virus strains and potential shifts in financial conditions.
  - Risk of long-term scarring from job losses, learning losses, bankruptcies, extreme poverty and hunger.

### Policy recommendations: Giving everyone a fair shot
- Overall priorities (from the Global Policy Agenda):
  1. First, a fair shot at the vaccine.
     - Ramp up vaccine production and distribution and steer clear of export controls.
     - Fully fund the COVAX facility and ensure surplus vaccines are transferred to poorer countries.
     - Economic benefit: Faster progress in ending the health crisis could add almost $9 trillion to global GDP by 2025.
     - Urgency: The window of opportunity for rapid global vaccination is closing fast.
  2. Second, a fair shot at recovery.
     - Support vulnerable households and viable firms while the crisis persists via targeted fiscal measures and maintaining favorable financial conditions.
     - Require careful communication by major central banks and prudent policies in emerging and developing countries to minimize harmful financial spillovers.
     - After the health crisis: gradually scale back broad support programs and scale up targeted hiring subsidies, retraining and reskilling—especially for low-skilled workers, youth and women.
     - Support viable small businesses through equity injections and better restructuring procedures.
     - Once recovery is firmly underway, ground fiscal policy in credible medium-term frameworks.
  3. Third, a fair shot at the future.
     - Scale up public investment in green projects, digital infrastructure, health and education to ensure inclusive benefits from the transformation to greener, smarter economies.
     - Mobilize sufficient public revenues and more efficient spending; in many cases this entails more progressive taxation and agreements on minimum taxation for companies and international tax rights.
     - Couple domestic reforms with stronger support for poorer countries to fight the crisis and invest in the future.
- Financing needs and instruments:
  - Low-income countries have to deploy some $450 billion over the next five years.
  - Needs include more domestic revenue mobilization, more external concessional financing, and more help to deal with debt.
  - Further extension of the Debt Service Suspension Initiative (just announced by the G20) and the new Common Framework for orderly debt restructuring will help.

### The role of the IMF
- Operational support and scale-up:
  - So far, the IMF has supported 86 countries with over $110 billion, using a variety of instruments.
  - IMF lending to Sub-Saharan Africa last year was 13 times more than the annual average over the previous decade.
  - The IMF has supported 160 countries through technical assistance and training.
  - The IMF has supported 29 of its poorest members through debt service relief that has recently been extended.
- SDRs and liquidity:
  - As indicated by the G20, the IMF will propose a new SDR allocation of $650 billion to address long-term global need for reserve assets and provide a substantial liquidity boost to members, especially the most vulnerable.
- Strategic message:
  - The crisis underscores shared global destiny and common responsibility to foster a fair recovery and build a resilient post-pandemic world.

*Source: Opening Remarks for the Spring Meetings Press Conference by Kristalina Georgieva, IMF Managing Director, April 7, 2021.*

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## References

- [The Managing Director’s Global Policy Agenda, Spring Meetings 2021 : Bolstering the Recovery, Countering the Divergence](https://www.imf.org/en/Publications/Policy-Papers/Issues/2021/04/07/The-Managing-Directors-Global-Policy-Agenda-Spring-Meetings-2021-Bolstering-the-Recovery-50343)
- [Spring Meetings 2021 Curtain Raiser Speech: Giving People a Fair Shot—Policies to Secure the Recovery](https://www.imf.org/en/News/Articles/2021/03/25/sp033021-SMs2021-Curtain-Raiser)
- [https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva](https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva)
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- [PRESS CENTER](http://presscenter.imf.org/)
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_Source: https://www.imf.org/en/news/articles/2021/04/07/sp-fostering-a-fair-recovery_