US Treasury Secretary Janet Yellen on Thursday urged the world’s major economies to provide “significant” funds to ensure the economy reactivates after the ravages caused by the COVID-19 pandemic.
Although prospects have improved, particularly due to substantial support from governments, “the job is not done yet,” Yellen said in a statement sent to the International Monetary Fund (IMF) and the World Bank.
“I urge large economies not only to avoid withdrawing support too soon, but also to contribute significant amounts of new fiscal aid to ensure a robust recovery,” said the Treasury chief.
The Secretary General of the OECD, José Ángel Gurría, also referred to public aid and pointed out that “a premature and abrupt withdrawal of budget support should be avoided” when “economies are still fragile and growth affected by (…) a slow rate of vaccinations “.
Yellen highlighted the $ 1.9 trillion relief package approved last month in the United States and Joe Biden’s infrastructure plan also aimed at creating $ 2 trillion jobs, which was detailed last week.
The IMF celebrated that nearly 16 trillion dollars invested by various governments will prevent further damage to the economy, which went through the worst peacetime recession in this crisis.
With the stimulus to the economy in place in the United States, Yellen projected that the country “could reach full employment as soon as next year.”
But many developing countries do not have the resources to support their economies, so he called on multilateral entities to continue focusing their limited funds on those that need it most.
Yellen noted that ending the health crisis remains central to recovery, pledging US support for vaccine distribution and ensuring that “funding does not become an obstacle to global vaccination.”
The United States “committed $ 4 billion to COVAX,” the initiative aimed at distributing vaccines in the world’s poorest countries. “I urge others to increase their support for this initiative,” Yellen said.