Washington (AFP) – US Treasury Secretary Janet Yellen urged the world’s major economies on Thursday not to reduce financial efforts to support the global economy.
In a speech addressed to the International Monetary Fund’s Steering Committee, Yellen said that global expectations have improved with the simultaneous disbursement of aid around the world, but the task has not ended, noting that there is a great deal of uncertainty and the risks of the long-term effects of the Covid-19 epidemic in many the countries.
“I urge the major economies not to withdraw their support too early, but to seek significant new budget support to ensure a strong recovery,” she said. This week, the International Monetary Fund revealed at its Spring Meetings a more optimistic economic outlook for 2021 and 2022 thanks to a strong economic recovery in the United States. The world’s largest economy adopted a new $ 1.9 trillion subsidy plan at the end of March, and the Biden administration intends to submit to Congress later this year a massive investment plan of more than $ 2,000 billion over eight years. But the recovery is unbalanced in the world with emerging countries lagging behind. In Europe, too, the recovery is tough, and the vaccination campaign is slow.
Janet Yellen said the priority is to end the health crisis, which is a prerequisite for a strong economic recovery, noting the significant progress made in immunizing the American population.
She also indicated that the United States has allocated $ 4 billion to the Kovacs initiative to help finance the global provision of vaccines, and I urge others to increase their support for this initiative. It also expressed its support for international institutions, the International Monetary Fund and the World Bank, which stand by the countries affected by the epidemic.
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