Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development has warned that globally they continue to face a highly uncertain economic outlook.
The G-24 said in their statement at the end of the 2020 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) that securing economic recovery is expected to be protracted with likely scarring damage to productive capacity. “Recovery could be set back by recurring surges of infections as social distancing measures are eased. In addition, risks to financial stability remain, which present potential headwinds for recovery. Increased downside risks imperil hard-won development gains and make the achievement of sustainable development goals even harder.”
Nevertheless, they remain optimistic about the potential for effective and accessible vaccines and treatments that could overcome the pandemic and therefore hasten the resumption of economic activity. At this critical juncture, they however are encouraged by the efforts of the G20, World Health Organization, World Trade Organization, and International Financial Institutions (IFIs) to deepen global cooperation to support all countries – in solidarity – confronting the inter-related health, social and economic crises brought about by the COVID-19 pandemic.
“We take note of the G20’s collective support for the development, manufacture and equitable distribution of affordable vaccines and treatments, which are critical global public goods, to contain the pandemic.”
All countries, without exception, they stressed should have timely and affordable access to these public goods on the basis of need, and also for humanitarian reasons. We also welcome the WBG’s proposed $12 billion initiative that would help developing countries procure COVID-19 vaccines to treat up to 1 billion people as soon as effective drugs become available.
The Group also welcome the COVID-19 Vaccine Global Access (COVAX) Initiative and urge major economies to provide the necessary financial support to ensure timely and affordable access for all countries, without exception. COVID-19 has spread rapidly around the world and in many emerging markets and developing countries (EMDCs) over the past six months. While countries are in different stages in containing the spread of the virus, several are still experiencing high levels of infection and deaths.
The global economy it says remains in recession, the global outlook has improved slightly as the economic decline in some major economies has been less severe than projected earlier. The economic impact of the global contraction and national measures taken to contain the pandemic, while varying across countries, has been severe for EMDCs overall.
“For the first time in decades, GDP growth in EMDCs, as a group, is expected to be negative this year. The pandemic is also exacerbating inequality, with millions of people losing their livelihood and falling into poverty.”
By Zainab Iyamide Joaque