IMF chief calls for strong G20 action to reverse ‘dangerous divergence’ in global economy

Strong policy action to reverse the ‘dangerous divergence’ that threatens to leave most developing economies languishing for years should be taken by the Group of 20 countries, the head of the International Monetary Fund said in a blog on Wednesday.

In order to speed up the roll-out of COVID-19 vaccines in poorer countries, IMF Managing Director Kristalina Georgieva said “much stronger international collaboration” was needed, including additional funding to help them buy doses and reallocate surplus vaccines to deficit countries.

She called for continued, targeted fiscal support by G20 governments to support economies, and said central banks should maintain accommodative monetary and financial policies to support flow of credit to households, and firms.