© Reuters. FILE PHOTO: International Monetary Fund (IMF) Managing Director Kristalina Georgieva makes remarks at an opening news conference during the IMF and World Bank’s 2019 Annual Fall Meetings of finance ministers and bank governors, in Washington, U.S., Octobe
WASHINGTON (Reuters) – Coordinated action is needed to arrest and begin to reverse the expanding numbers of fragile states, International Monetary Fund Managing Director Kristalina Georgieva said on Monday.
Georgieva told a panel at the fall meetings of the IMF and World Bank the COVID-19 pandemic had exacerbated problems in states that were already more vulnerable to problems such as extreme poverty, droughts, rising food prices and, in some cases, war.
“We have to have the humbleness to recognize that the universe of fragile states has been expanding, and unless we commit to bring all our forces together, we will not arrest or reverse that trend,” she said.
Georgieva said economic trends were diverging for advanced economies and all developing countries, but the gap was far more stark for fragile and conflicted-affected states, which saw real gross domestic product per capita decline by 6.6% in 2020.
These countries also saw a bigger increase in public debt and were expected to face more inflationary pressures, but had a hard time raising revenues.
Support from the international community was critical to help fragile states and reverse the growing divergence, she said, noting that the IMF had provided $7.5 billion to support to support fragile states.
The IMF’s recent allocation of $650 billion in new Special Drawing Rights included $16.2 billion in funds for these countries, she said.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
