IMF Urges Policymakers to Avoid Premature Withdrawal of Support for the Economy

“In terms of fiscal space and capacity to provide support, advanced economies have so far deployed 20 per cent of GDP, emerging market economies six per cent, and low-income countries 2 per cent, Georgieva said in her address to the Development Committee Plenary Meeting of the International Monetary Fund and the World Bank here. The International Monetary Fund Managing Director Kristalina Georgieva To help developing countries maintain support, the IMF and the World Bank will have to lean forward, she said.

Georgieva also urged policymakers to gradually redirect public support to underpin structural change and the post-pandemic economy that should be more equitable and focused on knowledge, digital and green sectors. Job-rich investments can support this, like infrastructure rehabilitation in advanced economies, or new infrastructure in emerging markets and developing countries. This will help ensure a just transition, together with training and skills. In other words, we need to build forward to the economy of tomorrow, she said.