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IMF chief: Intl solidarity key amid global shift to recovery

By Chen Jia in Boao, Hainan | chinadaily.com.cn | Updated: 2021-04-20 11:34
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The emblem of International Monetary Fund. [Photo/Xinhua]

Solidarity between countries remains important when the world is shifting from deep recession to recovery, along with digital transformation and the necessity of green investments, according to the International Monetary Fund chief on Tuesday.

"As recovery takes hold, governments can gradually scale back support programs—but scale up targeted hiring subsidies and retraining and reskilling," which is particularly important for low-skilled workers, youth and women, IMF Managing Director Kristalina Georgieva said at the opening plenary of Boao Forum for Asia Annual Conference 2021 via a video.

Georgieva called for further strengthening global cooperation, such as in the Common Framework for orderly debt resolution, and the possible new SDR allocation of $650 billion from the IMF, as well as in other fiscal and monetary measures.

"This kind of global cooperation can turn a world of change into a world of opportunity for all," she said.

The recent IMF global growth projection was at 6 percent this year and 4.4 percent in 2022, supported by government interventions and spurred by the prospect of expanding vaccinations.

IMF Managing Director Kristalina Georgieva speaks in this Feb 16, 2020 file photo. [Photo/Agencies] 

Digital transformation becomes another major change, which has been accelerated by the pandemic. China has made great strides reshaping its own economy based on technology. Under this change, governments should scale up smart public investments, especially in digital skills and infrastructure "to build a 21st century workforce", Georgieva said.

In the speech, she highlighted the necessity of green investments. "We welcome China's commitment to reach net zero by 2060, and other major economies are making similar pledges."

The IMF analysis shows a coordinated green infrastructure push combined with carbon pricing, could boost global GDP in the next 15 years by 0.7 percent per year and create millions of jobs.

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