IMF urges for urgent actions plans to restore global economy

IMF urges for urgent actions plans to restore global economy

Representational Image

The International Monetary Fund (IMF) has pointed out that urgent policy action is required to control the COVID-19 pandemic, limit economic scarring and transform the global economy.

The global economic recovery is proceeding with the support of unprecedented monetary, fiscal, and financial assistance over the past year. However, pandemic-induced divergences are persisting, driven by stark differences in access to vaccines and policy space, the Washington-based lender said.

In IMF’s latest global policy update it stated that vaccination of the world population was paramount and that policies should be calibrated to support the recovery and counter growing divergence within and between countries.

“Now is the time to come together and set things right for future generations by steering our way out of the crisis and setting course for a more prosperous future,” the fund said.

The new policy update came following the IMF lowered its growth forecast for the global economy this year, which is now set for a “hobbled” recovery, owing to weakening momentum as a result of COVID-19 outbreaks, uneven access to vaccines, supply chain disruptions and risks from rising inflation. The fund revised down growth in 2021 to 5.9 percent from its 6 percent estimate in July, while keeping its 2022