Long Road to Economic Recovery

By: Mfundo Mabaso

The head of the International Monetary Fund (IMF), Kristalina Georgieva, is warning of an uncertain global recovery as the world struggles with the economic crisis spurred by the COVID-19 pandemic.

In January the fund projected global growth at 5,5% this year, now it expects a further acceleration.

“This is partly because of additional policy support—including the new fiscal package in the United States; and partly because of the expected vaccine-powered recovery in many advanced economies later this year,” explains Georgieva

She says the global economy is on firmer footing but prospects are diverging dangerously between and within countries.

“While the outlook has improved overall, prospects are diverging dangerously not only within nations but also across countries and regions. In fact, what we see is a multi-speed recovery, increasingly powered by two engines—the US and China.”

Georgieva adds that COVID-19 has made the case for pandemic preparedness and more broadly for investing in resilience.

On solutions, she suggests strong policy action as there will be no sustainable recovery without giving people a fair shot.

“We must follow the example of the scientists by stepping up cross-border efforts, by doing whatever it takes to ramp up vaccine production, distribution, and deployment. Second we must safeguard the recovery and finally we must invest in the future,” explains Georgieva.