Finance ministers and central bank governors across the world have committed to deploying customized policy responses to tackle the adverse effects of the coronavirus pandemic on the global economy.
Speaking in a communique issued at the end of the 42nd meeting of the International Finance and Monetary Committee, IMFC, of the International Monetary Fund, IMF, on the sidelines of the ongoing Annual meetings of the World Bank and IMF, the global leaders noted that the pandemic will leave long-lasting scars on the global economy, such as weaker productivity growth, heavier debt burdens, heightened financial vulnerabilities, and higher poverty and inequality.
Among other things, the IMFC advises and reports to the IMF Board of Governors on the supervision and management of the international monetary and financial system, including on responses to unfolding events that may disrupt the system.
The IMFC has 24 members, drawn from the pool of 187 governors. Its structure mirrors that of the Executive Board and its 24 constituencies, thus the IMFC represents all the member countries of the Fund.
The IMFC meeting was chaired by the Governor of South African Reserve Bank, Lesetja Kganyago, while participants include the IMF Managing Director, Kristalina Georgieva.
While expressing sympathies for the loss of human lives caused by the COVID-19 pandemic, they however expressed concern over the unbalance nature of the global economic recovery from the impact of the pandemic.
To address these challenges, the top finance experts reiterated commitment to mitigating the health and economic impact of the pandemic on people worldwide.
They said: “To support the recovery, we will sustain our extraordinary and agile policy response, tailored to the different stages of the crisis and country-specific circumstances.
“We commit to using all available policy tools, individually and collectively, to restore confidence, jobs, and growth.
“We stand ready to assist the most vulnerable countries and people. We emphasize the need for international cooperation to accelerate the research, development, manufacturing, and distribution of COVID-19 diagnostics, therapeutics and vaccines, with the aim of supporting equitable and affordable access for all, which is key to overcoming the pandemic and supporting global economic recovery.
“As the crisis abates, we will continue to aim for a robust recovery in growth as we gradually shift fiscal resources from broad-based to more targeted support and facilitate structural transformation, cushioning the impact on jobs, vulnerable people, and viable firms, while preserving debt sustainability.
“Monetary policies should remain accommodative, in line with central banks’ mandates. We will continue to monitor and, as necessary, tackle financial vulnerabilities and risks to financial stability, including with macroprudential policies. We reaffirm our exchange rate commitments.”