Daily Management Review

Global GDP Can Be Boosted $9 Trillion By 2025 By Vaccine Cooperation, Says IMF Chief


Global GDP Can Be Boosted $9 Trillion By 2025 By Vaccine Cooperation, Says IMF Chief
The economic recovery of the world from the impact of the novel coronavirus pandemic could be sped up by implementing strong international cooperation of the vaccines against the disease.
International Monetary Fund (IMF) Managing Director Kristalina Georgieva said that such a measure could add as much as $9 trillion to global income by 2025.
It is crucially important that any vaccine against the disease be distributed in an equitable manner all across the world – both in the developing countries as well as in the wealthy economies which in turn will help to build up confidence of consumers in travel, investment, trade and other economic activities – thereby positively impacting global economic recovery, she said.
"If we may make fast progress everywhere, we could speed up the recovery. And we can add almost $9 trillion to global income by 2025, and that in turn could help narrow the income gap between richer and poorer nations," Georgieva said.
"We need strong international cooperation and this is most urgent today for vaccine development and distribution," she said.
The IMF's International Monetary and Financial Committee said in its statement that the most crucial element in avoiding long lasting scars on the world economy will be the equitable and affordable access to Cvoid-19 therapeutics and vaccines all throughout the world.
The United States Congress and the White House would ultimately come to an agreement on implementing another spending package and she was very confident about this, Georgieva also said. However she was unsure about the timing of the package. She said that the almost $3 trillion in US stimulus spending announced and distributed earlier this year "has been an important positive impulse and we would like to see how it would be continued again".
A call on keeping up the strong economic stimulus that could help boost a global recovery was also made to the US and China by Georgieva.
In its latest economic outlook report, the IMF had predicted a 2020 global contraction of 4.4 per cent which was an upward revision in contraction in comparison ot its previous estimates of a contraction of more than 5.2 per cent made in June.
According to its outlook, the only economy that is likely to register a growth in its GDP this year will be China with the IMF predicting that the Chinese economy will grow at a rate of 1.9 per cent this year.