Finance Minister Nirmala Sitharaman on Thursday endorsed the view of the International Monetary Fund (IMF) in ensuring universal applicability of vaccines and medical solutions.
Addressing the plenary meeting of the International Monetary and Financial Committee virtually, she said the IMF’s assertion that multi-speed economic recovery can potentially cause significant disruption in developed and low-income economies warrants cooperation and a coordinated policy.
She said the burden of economic transformation into a low carbon one is disproportionately higher for the emerging market (EM), developing, and low-income economies. “We must focus on agreed principles of equity and differentiated responsibility of climate action,” she said.
The IMF is now projecting a stronger recovery for the global economy at 6 per cent in 2021, compared to 5.5 per cent it predicted in January. It has now projected the global economy to grow 4.4 per cent in 2022. The world output contracted 3.3 per cent in 2020.
The IMF said recoveries are also diverging dangerously across and within countries, as economies with slower vaccine roll-out, more limited policy support, and more reliant on tourism do less well.