{
  "title": "Transcript of IMF Managing Director Press Briefing on the Global Policy Agenda",
  "publication": "IMF News, October 13, 2021",
  "sourceUrl": "https://www.imf.org/en/news/articles/2021/10/13/tr101321-transcript-of-imf-managing-director-press-briefing-on-the-global-policy-agenda",
  "canonical": "https://www.imf.org/en/news/articles/2021/10/13/tr101321-transcript-of-imf-managing-director-press-briefing-on-the-global-policy-agenda",
  "overlayPath": "/en/news/articles/2021/10/13/tr101321-transcript-of-imf-managing-director-press-briefing-on-the-global-policy-agenda/index.md",
  "summary": "Global growth forecast for this year revised to 5.9 percent, a 0.1 percent downgrade.",
  "publishDate": "2021-10-13",
  "sections": [
    {
      "heading": "Global outlook and key statistics",
      "content": "- Global growth forecast for this year revised to 5.9 percent, a 0.1 percent downgrade.\n- Projections for next year unchanged at 4.9 percent.\n- By 2024, nearly 160 economies will still face output losses relative to prepandemic trends.\n- If COVID‑19 has a more prolonged impact, this could lead to a 5.3 trillion in global GDP losses over the next five years.\n- IMF emergency support during the crisis: $118 billion provided to 87 countries plus debt service relief to poorest members.\n- $650 billion equivalent of special drawing rights (SDRs) issued; of those, 275 billion went to emerging and developing economies.\n- Aspiration for voluntary on‑lending of SDRs: $100 billion target referenced.\n- Poverty Reduction and Growth Trust access levels increased by 45 percent.\n- Tunisia has received nearly $750 million equivalent of SDRs."
    },
    {
      "heading": "Global Policy Agenda: three priorities (Vaccinate, Calibrate, Accelerate)",
      "content": "- Vaccinate\n  - Priority to step up vaccination efforts everywhere.\n  - Target: vaccinate at least 40 percent of people in every country by the end of this year and 70 percent by mid‑2022 (shared target with World Bank, WHO, WTO).\n  - Actions: send more vaccines to developing countries; remove trade and financing constraints; improve transparency in contracts and delivery schedules.\n  - Risk: failing to achieve targets could contribute to the projected 5.3 trillion global GDP loss over five years.\n\n- Calibrate policies to country circumstances\n  - Expectation: price pressures to subside in most countries by the middle of next year; central banks can generally look through transitory inflation pressures but must be ready to act if inflation expectations rise.\n  - Some emerging and developing economies are already experiencing more persistent price pressures, with higher food and energy prices hitting poorer families hardest.\n  - Policy implications: some countries have already raised interest rates; transparent and clear communication of monetary plans is critical to limit cross‑country spillovers.\n  - Fiscal constraints: prolonged pandemic tightens fiscal space, forcing difficult trade‑offs and requiring credible medium‑term frameworks, especially for countries with no fiscal firepower (most low‑income nations).\n\n- Accelerate structural reforms (sustainability and resilience)\n  - Climate action: the right green policy package, robust price on carbon, and substantial scale‑up of green investments can create 30 million new jobs in this decade.\n  - Digital investment: connect the other half of humanity not yet online to boost productivity and living standards.\n  - New technologies (cryptoassets, central bank digital currencies) must be carefully managed worldwide.\n  - Global tax cooperation: historic G‑20 agreement on a global minimum corporate tax and redistribution of taxing rights cited as evidence of cross‑border cooperation."
    },
    {
      "heading": "Financing, SDRs, and new instruments",
      "content": "- SDRs\n  - $650 billion equivalent allocation; 275 billion went to emerging and developing economies.\n  - Some countries using SDRs to raise official reserves and for priority needs like vaccine imports and lifeline spending.\n  - IMF working to increase transparency in SDR use.\n  - Call for better‑off countries to voluntarily on‑lend part of their SDRs; $100 billion on‑lending aspiration noted.\n\n- Resilience and Sustainability Trust (RST)\n  - Purpose: support policy choices in low‑income and vulnerable middle‑income countries to underpin economic transformation and avoid future balance of payments crises.\n  - IMF Board discussion: positive membership support; interest from potential contributors.\n  - Design: close Bank‑Fund collaboration envisaged; World Bank sectoral skills to provide inputs; some members interested in engaging in design.\n  - RST seen as part of solutions for long‑term transformation on climate and resilience.\n\n- Poverty Reduction and Growth Trust (PRGT)\n  - Reformed to provide more concessional financing; access levels increased by 45 percent.\n  - Potential conduit for voluntary SDR on‑lending to deliver zero interest loans to low‑income countries."
    },
    {
      "heading": "Bank‑Fund collaboration and crisis responses",
      "content": "- Collaboration examples:\n  - Multilateral leaders task force on the pandemic including David Malpass, Ngozi Okonjo‑Iweala, Dr. Tedros, and the IMF Managing Director, focused on vaccine delivery transparency.\n  - Work to improve the Common Framework for debt restructuring as the Debt Service Suspension Initiative ends.\n  - Longstanding cooperation on Financial Sector Assessment Programs.\n- Membership difference: Andorra participates in the Fund but has not joined the Bank."
    },
    {
      "heading": "Regional focus: Africa",
      "content": "- Vaccination gap: Africa at 4 percent vaccinated versus 60 percent in advanced economies.\n- Economic impact:\n  - Africa contraction in 2020: 1.7 percent (worst on record).\n  - Growth recovering to 3.7 percent this year and next year.\n  - To catch up, Africa needs sustained growth rates substantially higher than 3.7 percent.\n- Financing needs:\n  - IMF estimate cited: $245 billion needed until 2025 to help Africa overcome the COVID‑19 economic crisis.\n  - If Africa is to catch up on the Sustainable Development Goals, financing needs would need to be doubled.\n- IMF actions for Africa:\n  - Tackle debt issues: making the Common Framework work; encouraging debt transparency for better restructuring prospects including private sector participation.\n  - Expand IMF concessional financing via PRGT reforms and voluntary SDR on‑lending.\n  - Support structural reforms and capacity development to strengthen institutions and resilience."
    },
    {
      "heading": "Country engagement highlights",
      "content": "- Argentina\n  - No decision made yet on surcharge reduction for over‑quota loans; informal Board discussion in September showed reservations and support for periodic review.\n  - IMF teams engaged with Argentine authorities to design a credible program that supports private sector‑led growth and job creation; mutual commitment to constructive dialogue noted.\n\n- Tunisia\n  - Technical engagement and capacity development support ongoing.\n  - Policy recommendations: well‑targeted economic reforms to stabilize the economy, put public finances on a sustainable path, and support private‑sector job creation.\n  - Tunisia received nearly $750 million equivalent of SDRs to help near‑term fiscal pressures."
    },
    {
      "heading": "Inflation, financial conditions, and risks",
      "content": "- Current assessment: inflation pressures expected to subside in most advanced economies by the middle of next year; viewed as likely transitory if vaccinations accelerate and supply bottlenecks ease.\n- Risks and channels:\n  - Demand–supply mismatches (advanced economies recovering faster) driving price pressures.\n  - Supply chain interruptions and more frequent natural disasters elevating food prices.\n  - Tighter financial conditions (higher interest rates) could put pressure on stretched asset valuations and spill over to emerging markets and developing countries.\n- Policy advice: central banks should look through transitory pressures but be prepared to act quickly if inflation expectations become unanchored; fiscal credibility and medium‑term frameworks are essential."
    },
    {
      "heading": "Institutional lessons and staff engagement",
      "content": "- Investigation and Board review\n  - IMF Executive Board conducted a comprehensive review and concluded it has full confidence in the Managing Director’s ability to lead the Fund.\n  - IMF Board explicit recognition of IMF staff excellence and integrity of IMF research and data.\n- Lessons emphasized by Managing Director\n  - Importance of ensuring staff feel included and empowered to express concerns through institutional channels.\n  - Commitment to engage directly with staff in candid discussions and to consider steps to strengthen avenues for raising concerns.\n  - Reference to prior experience improving staff morale and trust in senior management in previous roles."
    },
    {
      "heading": "Climate action priorities and role of youth",
      "content": "- Four global priorities (highlighted for Asia and broadly applicable):\n  - Put incentives in place for the low‑carbon transition: eliminate harmful subsidies and put a price on carbon.\n    - Global average carbon price example: from $3 a ton today to $75 a ton in 2030 cited as the transformational signal needed.\n    - Proposal for an international carbon price floor among big emitters, allowing different approaches (tax, trade, regulatory equivalency).\n  - Invest in green infrastructure and green mobility; public sector investment should support the transition.\n  - Ensure a just transition: protect workers and communities affected by the shift (e.g., coal miners) with viable alternative livelihoods.\n  - Prioritize adaptation and resilience: Asia can lead on adaptation given existing innovations and acute exposure to climate shocks.\n- Role of youth:\n  - Young people encouraged to speak up, engage, and advocate for climate action.\n  - IMF engagement: initiatives such as a new climate challenge to involve youth and broader engagement on climate priorities.\n\nTranscript of IMF Managing Director Press Briefing on the Global Policy Agenda — October 13, 2021\n\n---\n\n\n References\n\n- https://www.imf.org/en/about/senior-officials/bios/kristalina-georgieva\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2021/10/13/tr101321-transcript-of-imf-managing-director-press-briefing-on-the-global-policy-agenda"
    }
  ],
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    "Published: October 13, 2021",
    "Global growth forecast for this year revised to 5.9 percent, a 0.1 percent downgrade.",
    "Projections for next year unchanged at 4.9 percent.",
    "By 2024, nearly 160 economies will still face output losses relative to prepandemic trends.",
    "If COVID‑19 has a more prolonged impact, this could lead to a 5.3 trillion in global GDP losses over the next five years.",
    "IMF emergency support during the crisis: $118 billion provided to 87 countries plus debt service relief to poorest members.",
    "$650 billion equivalent of special drawing rights (SDRs) issued; of those, 275 billion went to emerging and developing economies.",
    "Aspiration for voluntary on‑lending of SDRs: $100 billion target referenced.",
    "Poverty Reduction and Growth Trust access levels increased by 45 percent.",
    "Tunisia has received nearly $750 million equivalent of SDRs.",
    "Vaccinate",
    "Calibrate policies to country circumstances",
    "Accelerate structural reforms (sustainability and resilience)",
    "SDRs",
    "Resilience and Sustainability Trust (RST)",
    "Poverty Reduction and Growth Trust (PRGT)",
    "Collaboration examples:",
    "Membership difference: Andorra participates in the Fund but has not joined the Bank.",
    "Vaccination gap: Africa at 4 percent vaccinated versus 60 percent in advanced economies.",
    "Economic impact:",
    "Financing needs:",
    "IMF actions for Africa:",
    "Argentina",
    "Tunisia",
    "Current assessment: inflation pressures expected to subside in most advanced economies by the middle of next year; viewed as likely transitory if vaccinations accelerate and supply bottlenecks ease.",
    "Risks and channels:",
    "Policy advice: central banks should look through transitory pressures but be prepared to act quickly if inflation expectations become unanchored; fiscal credibility and medium‑term frameworks are essential.",
    "Investigation and Board review",
    "Lessons emphasized by Managing Director",
    "Four global priorities (highlighted for Asia and broadly applicable):",
    "Role of youth:",
    "[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/)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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