As the IMF has warned, economic recoveries are diverging dangerously. The disparities will widen further between wealthy countries that have widespread access to vaccines, diagnostics, and therapeutics, and poorer countries still struggling to inoculate frontline healthcare workers. As of the end of April 2021, less than two percent of Africa’s population had been vaccinated. By contrast, over 40 percent of the population in the United States and over 20 percent in Europe had received at least one dose of the vaccine.

It is well understood that there can be no lasting end to the economic crisis without an end to the health crisis. Pandemic policy is thus economic policy. It is critical for global macroeconomic and financial stability, which makes it of fundamental importance to the IMF and other economic institutions. Ending the pandemic is a solvable problem but requires further coordinated global action.

The latest research by IMF staff analyzes...

By Jorge Mondragon and Marina M. Tavares

Lower-skilled and young workers were among the hardest hit from the pandemic, suffering job losses in record numbers last year. Some of those jobs may never reappear as economies readjust to a post-pandemic world. Longer-term changes appear likely in terms of the mix of jobs in the economy—some sectors and occupations will permanently shrink, and others will expand. With many unemployed workers still struggling to regain their pre-pandemic salaries and other fundamental shifts underway, incomes across workers are likely to diverge further.

As shown in our latest chart of the week, research from the April 2021 World Economic Outlook finds that job retention support (shown by the blue line) can more quickly reduce the rise in income inequality in the first few months after a crisis hits. When followed with support for workers to shift or reallocate to new jobs, our analysis shows that the combined, well-sequenced policy...

By Jorge Mondragon and Marina M. Tavares

Lower-skilled and young workers were among the hardest hit from the pandemic, suffering job losses in record numbers last year. Some of those jobs may never reappear as economies readjust to a post-pandemic world. Longer-term changes appear likely in terms of the mix of jobs in the economy—some sectors and occupations will permanently shrink, and others will expand. With many unemployed workers still struggling to regain their pre-pandemic salaries and other fundamental shifts underway, incomes across workers are likely to diverge further.

As shown in our latest chart of the week, research from the April 2021 World Economic Outlook finds that job retention support (shown by the blue line) can more quickly reduce the rise in income inequality in the first few months after a crisis hits. When followed with support for workers to shift or reallocate to new jobs, our analysis shows that the combined, well-sequenced policy...

As the IMF has warned, economic recoveries are diverging dangerously. The disparities will widen further between wealthy countries that have widespread access to vaccines, diagnostics, and therapeutics, and poorer countries still struggling to inoculate frontline healthcare workers. As of the end of April 2021, less than two percent of Africa’s population had been vaccinated. By contrast, over 40 percent of the population in the United States and over 20 percent in Europe had received at least one dose of the vaccine.

It is well understood that there can be no lasting end to the economic crisis without an end to the health crisis. Pandemic policy is thus economic policy. It is critical for global macroeconomic and financial stability, which makes it of fundamental importance to the IMF and other economic institutions. Ending the pandemic is a solvable problem but requires further coordinated global action.

The latest research by IMF staff analyzes...

As the IMF has warned, economic recoveries are diverging dangerously. The disparities will widen further between wealthy countries that have widespread access to vaccines, diagnostics, and therapeutics, and poorer countries still struggling to inoculate frontline healthcare workers. As of the end of April 2021, less than two percent of Africa’s population had been vaccinated. By contrast, over 40 percent of the population in the United States and over 20 percent in Europe had received at least one dose of the vaccine.

It is well understood that there can be no lasting end to the economic crisis without an end to the health crisis. Pandemic policy is thus economic policy. It is critical for global macroeconomic and financial stability, which makes it of fundamental importance to the IMF and other economic institutions. Ending the pandemic is a solvable problem but requires further coordinated global action.

The latest research by IMF staff analyzes...

June 1, 2021

As preparations are made for the G7 Summit in the UK next week, top of the agenda is how to end the COVID-19 pandemic and secure the global recovery. Urgent challenges face us.

 

By now it has become abundantly clear there will be no broad-based recovery without an end to the health crisis. Access to vaccination is key to both.

 

There has been impressive progress on the vaccination front.  Scientists have come up with multiple vaccines in record time.  Unprecedented public and private financing has supported vaccine research, development and manufacturing scale-up. But a dangerous gap between richer and poorer nations persists.

 

In fact, even as some affluent countries are already discussing the rollout of booster shots to their populations, the vast majority of people in developing countries—even front-line health workers— have still not received their first...

The issues brought about by climate change are as diverse as they are serious. Everything from infrastructure planning and disaster relief efforts, to green investments and moving to the circular economy are affected.

The time for organisations to be united in their approach to combating climate change on all fronts is now.

Ahead of the 47th G7 summit and COP26, we are bringing together the leading voices and prominent thinkers addressing climate-related risk to extend your knowledge and build your network.

Open to attendees from both the public and private sectors, this free-to-attend Insurance Development Forum virtual event is your chance to be part of the conversation that tackles the pressing concerns – and opportunities – and learn more about the ways in which the IDF is nurturing operational progress within the broader insurance community.

Join us virtually 7th - 8th June, 2021.

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Digital services taxes take shape in the shadow of the pandemic

When European Union leaders took aim at the global pandemic last year, they knew they would need a bigger budget. To help pay for it, they will look toward bigger companies: the world’s technology giants.

EU leaders agreed in principle to introduce a digital levy, with details to be put forward in mid-2021. While it won’t be the largest source of revenue for the pandemic budget, it could be a big step forward in how European countries tax corporations. The plan adds to a long-standing push to reevaluate how the tech titans pay taxes and address how countries around the world can claim their fair share of revenue they help to generate.

If successful, new tax regimes could make it easier for countries to collect revenue generated within their borders and reduce public ire toward the outsize successes of American companies like Amazon, Facebook, Apple, and Google...

End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF's Executive Board for discussion and decision.### The IMF’s Extended Credit Facility (ECF) provides financial assistance to countries facing protracted balance of payments difficulties—meaning their underlying macroeconomic imbalances are expected to be resolved over the medium or longer term. So, the facility supports economic programs aimed at restoring macroeconomic stability sustainably and reducing poverty durably through strong growth. The ECF carries a zero-interest rate, with a grace period of 5½ years, and a final maturity of 10 years. The duration of Uganda’s...

June 1, 2021

As preparations are made for the G7 Summit in the UK next week, top of the agenda is how to end the COVID-19 pandemic and secure the global recovery. Urgent challenges face us.

 

By now it has become abundantly clear there will be no broad-based recovery without an end to the health crisis. Access to vaccination is key to both.

 

There has been impressive progress on the vaccination front.  Scientists have come up with multiple vaccines in record time.  Unprecedented public and private financing has supported vaccine research, development and manufacturing scale-up. But a dangerous gap between richer and poorer nations persists.

 

In fact, even as some affluent countries are already discussing the rollout of booster shots to their populations, the vast majority of people in developing countries—even front-line health workers— have still not received their first...

June 1, 2021

As preparations are made for the G7 Summit in the UK next week, top of the agenda is how to end the COVID-19 pandemic and secure the global recovery. Urgent challenges face us.

 

By now it has become abundantly clear there will be no broad-based recovery without an end to the health crisis. Access to vaccination is key to both.

 

There has been impressive progress on the vaccination front.  Scientists have come up with multiple vaccines in record time.  Unprecedented public and private financing has supported vaccine research, development and manufacturing scale-up. But a dangerous gap between richer and poorer nations persists.

 

In fact, even as some affluent countries are already discussing the rollout of booster shots to their populations, the vast majority of people in developing countries—even front-line health workers— have still not received their first...

June 1, 2021

As preparations are made for the G7 Summit in the UK next week, top of the agenda is how to end the COVID-19 pandemic and secure the global recovery. Urgent challenges face us.

 

By now it has become abundantly clear there will be no broad-based recovery without an end to the health crisis. Access to vaccination is key to both.

 

There has been impressive progress on the vaccination front.  Scientists have come up with multiple vaccines in record time.  Unprecedented public and private financing has supported vaccine research, development and manufacturing scale-up. But a dangerous gap between richer and poorer nations persists.

 

In fact, even as some affluent countries are already discussing the rollout of booster shots to their populations, the vast majority of people in developing countries—even front-line health workers— have still not received their first...

Heads of International Monetary Fund, World Bank Group, World Health Organization, World Trade Organization issue extraordinary call for financing actions by government leaders to accelerate end to COVID-19 pandemic. IMF, WB, WHO, WTO principals call for $50 billion investment to generate $9 trillion in global economic returns by 2025 and boost manufacturing capacity, supply, trade flows and the equitable distribution of diagnostics, oxygen, treatments, medical supplies and vaccines. Call to action by this quadrilateral grouping comes at a perilous point in the pandemic and as the historic World Health Assembly concludes, G7 meetings commence, and follows the G20 Global Health Summit. Doses need to be donated immediately to developing countries, synchronized with national vaccine deployment plans, including through COVAX, which is co-led by CEPI, Gavi and WHO, alongside key delivery partner UNICEF.

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