Via IMF (Den Internationale Valutafond)

IMF Managing Director Kristalina Georgieva’s Remarks at Caixin Summit

November 12, 2020

Zao Shang Hao!

I want to start by thanking Caixin for the invitation to speak to you
today—and Hu Shuli for a kind introduction.

We are finishing an extraordinary year.

2020 will go down in history as the year when the world faced its biggest
challenge since the Second World War and deepest recession since the Great

Because of the decisive action of governments and central banks, we managed
to put a floor under the world economy. And we are seeing the green shoots
of recovery.

But the road ahead is going to be difficult.

Coming out of this recession will require, domestically and globally, determined collective action. This is what I want to focus
on in my address to you today.

What should be the priorities for the global community as we step into

How can we make it a year not only of economic recovery but of economic

How can we achieve a world on the other side of the pandemic that is
greener, smarter, and more inclusive?

Let me start with priority number one: to defeat the virus, defeat it

We cannot possibly achieve a sustainable recovery unless we have a durable
exit from the health crisis.

That means taking action to protect people from the virus while it is still
with us – and most importantly taking action to have vaccines and treatment
and make sure that they are available everywhere.

This crisis teaches us that we are only as strong as our weakest link.

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For this reason, I want to welcome what China has done to combat the virus
so far.

As a result of very determined domestic measures, the Chinese economy is
going to be one of the very few that will finish 2020 with positive
economic growth. We project 1.9% growth for this year and 8.2% for next

China has also made a commitment, as it comes up with vaccines and
treatments, to make them global public goods. And it has joined others to
make sure that we can accelerate the delivery of vaccines to all people,

And I am encouraged to see that there are good indications that vaccines
are going to be available for 2021.

Second, we must be determined to underpin the road to recovery with
continuous strong policy actions.

Our main message here is:

do not withdraw fiscal policy support and monetary policy support
. China has been strong in early actions — and also in continuing these
actions until we see the health crisis in the rearview mirror.

Also, China has recognized that while this crisis hits everybody, it is
low-income countries that are suffering the most.

I want to express our gratitude from the IMF for China’s contribution to
our concessional lending capacity. As a result of it 47 of the 81 countries that have benefited from financial
support from the IMF are low-income countries who are benefiting from
concessional finance. China also joined us in extending debt relief to our 29 poorest members.

It is very important that we move forward with that same determination to
help low-income countries.

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And in that regard, the G-20 Debt Service Suspension Initiative that China
joined remains very important. I urge all creditors everywhere to embrace
this initiative.

I also look forward to the Common Framework for debt resolution that the
G-20 is working on, and I look forward to engaging with China as we find
solutions to countries that are suffering under the burden of debt. Debt
restructuring in some cases is a necessity.

As we look forward, it is very critical to zero on our third priority:
make sure that actions we take to support the recovery are oriented not
to reproducing the economy of yesterday but shaping the economy of

What this means is that the necessary public investments that are going to
be put in place in the months and years ahead should pursue, first, investment in people to make sure that people are
resilient – education, health, social protection.

Second, investment in green infrastructure – making sure
that we can build a low-carbon, climate-resilient economy for tomorrow. And
I want to welcome China’s commitment to go carbon-neutral by 2060. So
important for China — and for the rest of the world!

And we also have to make sure that the digital transformation we have seen happening at an
accelerated pace benefits everybody – that people in countries with more or
less financial capabilities can be connected so we can see inequalities
that have been a problem in the past being tackled on the basis of equal
access to the opportunities of tomorrow.

Finally, we know that the engine of growth that we have benefited from
for many decades, trade, remains important.

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And in many countries there is a sense that some benefit from global trade,
while others see their jobs evaporating as a result. That focus on making
sure trade works for everyone ought to be a priority for everybody, and I
do believe that China will play its important role in this regard.

Let me finish by wishing you very successful discussions – and for all of
us to see 2021 be the year of transformation that brings us to a better
world, for us, but most importantly for our children and our grandchildren. Xie xie.

IMF Communications Department


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