$ 9 trillion: potential increase in revenue from coronavirus vaccine | Economy News


Strong international cooperation on coronavirus vaccines could accelerate the global economic recovery and add $ 9 trillion to global income by 2025, said International Monetary Fund Managing Director Kristalina Georgieva.Speaking at a press conference after an IMF steering committee meeting, Georgieva also called on the United States and China to maintain their economic stimulus measures that could help spur a global recovery.

She stressed the need to evenly distribute vaccines around the world in developing countries and wealthy countries, in order to build confidence in travel, investment, trade and other activities.

“If we can make rapid progress everywhere, we could accelerate the recovery. And we can add nearly $ 9 trillion to global income by 2025, which in turn could help close the income gap between the richest and the poorest countries, ”Georgieva said. .

“We need strong international cooperation and this is the most urgent today for the development and distribution of vaccines,” she said.

Fair and affordable access to COVID-19 therapeutics and vaccines around the world will be essential to avoid lasting scars on the global economy, the IMF’s International Monetary and Financial Committee said in its statement.

Georgieva also said she had “no doubts” that the US Congress and the White House would eventually agree on another spending package, but was unsure when. Some $ 3 trillion in stimulus spending in the United States earlier this year “was a big positive boost and we would like to see how that continues again,” she said.

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The committee said the involvement of private creditors and official bilateral creditors in debt relief for poor countries is essential, Georgieva adding that “increased private sector involvement is still needed and remains an outstanding issue.”

The G20 on Wednesday approved a six-month extension until mid-2021 of the Debt Service Suspension Initiative (DSSI) which freezes official bilateral debt payments and said it would consider a further extension. six months in April. But private creditors and lenders outside the Paris Club – a group of creditor countries that includes most of the key economies but excludes China – are not fully participating.

“We are disappointed with the lack of progress in the participation of private creditors in the DSSI and strongly encourage them to participate on terms comparable to the request of eligible countries,” said the steering committee while encouraging “full participation official bilateral creditors ”.


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