The policy-setting body of the International Monetary Fund (IMF) on Thursday warned that the COVID-19 pandemic threatens to leave long-lasting scars on the global economy, pledging to use all available policy tools to restore growth.
"A tentative global economic recovery is underway, supported by extraordinary macroeconomic policy responses. But the recovery is partial, uneven, and marked by significant uncertainty, with the pandemic continuing to spread in places," the International Monetary and Financial Committee (IMFC) said in a communique after a meeting.
"The crisis threatens to leave long-lasting scars on the global economy, such as weaker productivity growth, heavier debt burdens, heightened financial vulnerabilities, and higher poverty and inequality," the IMFC said, committing to using all available policy tools to restore confidence, jobs and growth.
"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," the IMFC noted, stressing the need for international cooperation to contain the pandemic.
"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," the IMFC said.
The IMFC also noted that it supports the IMF's efforts to fully utilize and further adapt its lending toolkit to help the membership address financing needs in the uncertain environment brought about by the pandemic.
"We also support the IMF continuing to explore additional tools that could serve its members' needs as the crisis evolves, drawing on relevant experiences from previous crises," the IMFC said.
In its latest World Economic Outlook report released Tuesday, the IMF revised up the 2020 forecast for global economy to a contraction of 4.4 percent. Despite the upward revision, the IMF said the ascent out of this crisis is likely to be "long, uneven and highly uncertain."
