The International Monetary Fund (IMF) Managing Director, Kristalina Georgieva (pictured) has commended China’s efforts to combat Corona virus so far.
She made the remarks at Caixin Summit held in China on November 12, 2020.
“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. We project 1.9% growth for this year and 8.2% for next year,” IMF boss said, adding: “China has also made a commitment, as it comes up with vaccines and treatments, to make them global public goods. And it has joined others to make sure that we can accelerate the delivery of vaccines to all people, everywhere. And I am encouraged to see that there are good indications that vaccines are going to be available for 2021.”
She added: “Second, we must be determined to underpin the road to recovery with continuous strong policy actions. Our main message here is: do not withdraw fiscal policy support and monetary policy support prematurely . China has been strong in early actions — and also in continuing these actions until we see the health crisis in the rearview mirror. Also, China has recognized that while this crisis hits everybody, it is low-income countries that are suffering the most.”
She expressed IMF’s gratitude for China’s contribution to its concessional lending capacity.
“As a result of it 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,” Georgieva said.
She said it is very important that they move forward with that same determination to help low-income countries.
“And in that regard, the G-20 Debt Service Suspension Initiative that China joined remains very important. I urge all creditors everywhere to embrace this initiative. I also look forward to the Common Framework for debt resolution that the G-20 is working on, and I look forward to engaging with China as we find solutions to countries that are suffering under the burden of debt. Debt restructuring in some cases is a necessity,” she said.
She added: “As we look forward, it is very critical to zero on our third priority: make sure that actions we take to support the recovery are oriented not to reproducing the economy of yesterday but shaping the economy of tomorrow.
What this means is that the necessary public investments that are going to be put in place in the months and years ahead should pursue, first, investment in people to make sure that people are resilient – education, health, social protection.”
Second, she said, investment in green infrastructure – making sure that they can build a low-carbon, climate-resilient economy for tomorrow.
“And I want to welcome China’s commitment to go carbon-neutral by 2060. So important for China — and for the rest of the world! And we also have to make sure that the digital transformation we have seen happening at an accelerated pace benefits everybody – that people in countries with more or less financial capabilities can be connected so we can see inequalities that have been a problem in the past being tackled on the basis of equal access to the opportunities of tomorrow,” she said.
She added: “Finally, we know that the engine of growth that we have benefited from for many decades, trade, remains important.
And in many countries there is a sense that some benefit from global trade, while others see their jobs evaporating as a result. That focus on making sure trade works for everyone ought to be a priority for everybody, and I do believe that China will play its important role in this regard.”
Georgieva said the world is finishing an extraordinary year.
“Because of the decisive action of governments and central banks, we managed to put a floor under the world economy. And we are seeing the green shoots of recovery. But the road ahead is going to be difficult. Coming out of this recession will require, domestically and globally, determined collective action,” she said.
