Global economic recovery from COVID-19 'remains difficult': IMF
WASHINGTON, United States — The global economy faces a hard road back from the COVID-19 downturn, and nations should remove trade barriers on medical technologies to aid the recovery, the IMF chief said on Thursday.
The call from Managing Director Kristalina Georgieva ahead of this week's G20 leaders summit comes as countries grapple with the fallout from a pandemic that has killed hundreds of thousands and caused a sharp contraction in growth.
"While a medical solution to the crisis is now in sight, the economic path ahead remains difficult and prone to setbacks," Georgieva said in a blog post.
Major pharmaceutical companies are now closing in on vaccines against the virus, amid a global spike in cases that has caused some countries to reimpose restrictions to curb transmission.
"The resurgence in infections is a powerful reminder that a sustainable economic recovery cannot be achieved anywhere unless we defeat the pandemic everywhere," Georgieva said.
She called for countries to cooperate to ensure an adequate supply of vaccines, tests and medicines, as well as "multilateral efforts on the manufacturing, purchase and distribution of these health solutions — especially in poorer nations.
It also means removing recent trade restrictions on all medical goods and services, including those related to vaccines," Georgieva said.
Last summit
The COVID-19 pandemic has caused more than 1.3 million deaths worldwide, according to an AFP tally, and wreaked a grievous toll on the global economy.
The IMF expects global growth to contract by 4.4 percent this year before rebounding 5.2 percent in 2021. However, Georgieva noted third-quarter growth was better than expected in the United States, Japan and European countries.
The virtual summit hosted by Saudi Arabia is set to be the last during the term of US President Donald Trump, who lost his bid for another four years in office earlier this month, though he has rejected the results.
Under his leadership, Washington has engaged in trade conflicts with strategic rival China as well as its European allies, which slowed down global growth even before the virus's arrival.
In a separate research note, the IMF called for countries to work together to finish the pandemic off.
"Combining well-coordinated national policies with joint measures at the global level will help ensure a strong, sustainable recovery," the Washington-based crisis lender said.
"In the immediate term, the G20 should refrain from imposing or intensifying trade restrictions and promptly remove those put in place since the start of the year on all medical goods and services as well as on any goods and services related to vaccine manufacturing and distribution."
The IMF called for Britain and the European Union to conclude a trade deal that would forestall new trade barriers as London disentangles itself from the regional bloc.
The lender also reiterated its call for more public spending to help countries escape the growth slowdown and reshape their economies for both growth and to fight climate change.
Companies are facing massive challenges as they continue to navigate the impacts of the COVID-19 pandemic. Follow this page for regular updates. Main image by The STAR/Miguel de Guzman
Official data show China's economy grew much better than expected in the first three months of the year as the country reopened after the end of zero-COVID measures.
The figures were the first snapshot since 2019 of the world's second-largest economy unencumbered by the strict health controls that helped keep the coronavirus in check but battered businesses and supply chains.
After years of travel restrictions and quarantines, Chinese people in recent months have finally returned to restaurants and started to move around more freely, giving much-needed stimulus to services.
According to data published by the National Bureau of Statistics (NBS), the official growth figure for January to March was 4.5% — significantly higher than the 3.8% predicted by analysts in an AFP poll. — AFP
China's economy grew 4.5 percent year-on-year in the first quarter, official data showed Tuesday, after Beijing scrapped its zero-Covid measures late last year.
The country's March retail figures, the main indicator of household consumption, were up 10.6 percent on-year, the biggest bounce since June 2021.
According to figures published by the National Bureau of Statistics (NBS), industrial production in March climbed 3.9 percent year-on-year.
Tuesday's figures are the first snapshot since 2019 of a Chinese economy unencumbered by public health restrictions. — AFP
China is expected to announce an economic rebound on Tuesday, when Beijing releases its first quarterly GDP figures since abolishing growth-sapping Covid restrictions late last year.
The Asian giant's virus containment policy -- an unstinting regime of strict quarantines, mass testing and travel curbs -- strongly constrained normal economic activity before it was abruptly ditched in December.
The disclosures on Tuesday will give the first snapshot since 2019 of a Chinese economy unencumbered by public health restrictions, with analysts polled by AFP expecting an average of 3.8 percent year-on-year growth in the period from January through March. — AFP
British engine maker Rolls-Royce logs a large 2022 loss on a huge accounting charge linked to foreign exchange contracts, but revenue and operating profit jumped on rising orders.
Rolls posted a net loss of almost £1.3 billion ($1.5 billion), after a profit after tax of £120 million the previous year, it said in a statement.
Turnover however soared by more than a fifth to £13.5 billion and operating profit leapt 63 percent to £837 million, driven by rising orders for civil aviation and defence divisions. — AFP
Hong Kong's finance chief has unveiled a HK$761 billion (US$97 billion) budget on Wednesday, plunging into the coffers to pay for the recession-hit city's post-Covid recovery.
Hoping to kickstart the finance centre's economy, Finance Secretary Paul Chan announced tax cuts and more consumer spending vouchers.
Hong Kong's leaders are keen to resuscitate its fortunes after posting recessions in three of the past four years -- a tumultuous period that saw the economy battered by protests, virus controls and Beijing's authoritarian crackdown.
While rival financial hubs reopened to the world long ago, Hong Kong only fully emerged from pandemic isolation earlier this month when it restored its border with mainland China, its main economic pipeline.
"Our economy is at the early recovery stage, and members of the public as well as a large number of enterprises are still weighed down by tremendous pressure and require support," Chan tells legislators while announcing his 2023/24 budget. — AFP
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