IMF Chief Warns of 22% Drop in Income by 2022

Kristalina Georgieva, managing director of the International Monetary Fund (IMF) warned that by the end of 2022, emerging and developing countries, with the exception of China, will see income per capital drop by 22% lower than pre-crisis levels, compared to only 13% for advanced economies, resulting in millions more falling into poverty.

Georgieva stressed in a blog on Wednesday that the G20 should take strong policy measures to reverse the "dangerous pergence" that threatens to leave most developing economies vulnerable in the post-pandemic world.

Georgieva said there is a need for 'much stronger international cooperation' to accelerate deployment of COVID-19 vaccines in poor countries, including additional funding to help them purchase doses and reallocate surplus vaccines from the developing world.

She also called for the resumption of financial support targeted by G20 governments to support economies, saying that 'central banks must maintain adequate monetary and financial policies to support the flow of credit to households and companies'.

She pointed out that the crisis triggered by the pandemic is leaving many economies underdeveloped, adding to the plight of the poor, a problem exacerbated by "unequal" access to vaccines.

According to Johns Hopkins University, the death toll from the global pandemic is approaching 2.5 million, and lockdowns have devastated economies, and while mass vaccinations are raising hopes for a recovery, the IMF forecasts job losses in the G20 alone to more than 25 million this year.