Washington calls on countries to do more to support the global economy

Washington calls on countries to do more to support the global economy
Washington calls on countries to do more to support the global economy

“The work is not done”. The United States on Thursday urged major economies to continue their financial efforts to ensure solid global growth and signaled their willingness to be at the heart of international aid.

“I urge the major economies not to withdraw their support too soon and to strive to provide significant new fiscal support to ensure a robust recovery,” US Treasury Secretary Janet Yellen said in a statement to the United States. Steering Committee of the International Monetary Fund (the IMF’s International Monetary and Financial Committee, IMFC).

The IMF this week unveiled at its spring meetings a more optimistic economic outlook for 2021 and 2022 thanks to the solid economic recovery in the United States.

The world’s largest economy adopted a new $ 1.9 trillion support plan at the end of March. And the Biden administration intends to pass Congress in the coming months a vast investment plan of more than $ 2,000 billion over eight years.

But the recovery is uneven in the world with emerging countries lagging behind as well as the economies of Latin America.

In Europe too, the recovery is difficult as the vaccination campaign has been delayed, forcing countries like France to take new containment measures or maintain the many activity restrictions.

“The number one priority is to end the health crisis, a prerequisite for a robust economic recovery,” argued Janet Yellen noting the “substantial progress” in immunization of the American population, with more than three million injections per day on average.

The French Minister of the Economy, Bruno Le Maire, for his part called on the countries to “closer coordination” and to act more “to support an inclusive economic rebound and fight against growing inequalities” in the world, in his statement addressed to the IMFC.

In his own statement to the Committee, OECD Secretary General Angel Gurria also believes that “a premature and abrupt withdrawal of budget support must be avoided, while economies are still fragile and growth is still hampered by (…) a slow pace of vaccinations ”.

To tackle the problem of immunization around the world, the United States “has committed $ 4 billion to COVAX”, an initiative to distribute vaccines to the poorest countries around the world. “I urge others to increase their support for this initiative,” Janet Yellen also said.

“We will work with partners to find global solutions to vaccinate the rest of the world”, she also assured.

Janet Yellen also expressed her support for international institutions, the IMF and the World Bank, which have been at the bedside of countries since the start of the pandemic.

“The Biden-Harris administration is committed to working with our partners, including the IMF and the World Bank Group, to help the world emerge from this crisis and prepare the ground for more inclusive, resilient future growth. and sustainable ”.

For Angel Gurria, the financial efforts deployed in the world are an “opportunity to accelerate the transition to a less carbon-emitting economy and to limit the threat that climate change represents” for the world economy.

Inequalities and the “existential threat” of climate change can only be resolved with strong international cooperation, Janet Yellen concluded.

(With MAP)

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