International Monetary Fund (IMF) Managing Director Kristalina Georgieva said Friday that even as the global economic recovery continues, its pace has moderated. 

"Three weeks ago, we downgraded our global forecast to a still-healthy 4.4 percent – partially because of reassessment of growth prospects in the United States and China," she said.

"Since then, incoming economic indicators point to weaker growth momentum in 2022 due to the emergence of the Omicron variant and supply chain disruptions that are more persistent than previously anticipated. At the same time, inflation readings remain high in many countries, financial markets are more volatile, and geopolitical tensions have sharply increased," Georgieva stressed.

IMF Managing Director said that strong international cooperation and extraordinary policy agility will be crucial to navigate a complex "obstacle course" through 2022.

"In this environment, our best course of action is to move from a singular focus on vaccines to ensuring that each country has equal access to a comprehensive COVID-19 toolkit that also includes tests and treatments. Keeping these tools updated as the virus evolves will require continuous investment in medical research, disease surveillance, and health systems that help countries reach ‘the last mile' in every community. The World Bank's announcement on mobilizing further toward reaching that goal is welcome," she added.

IMF submitted that the G-20 Common Framework can play an important role, by putting in efforts to make it even more impactful. In addition to transparency and early action, that means:

- Offering a debt service standstill during negotiations to avoid squeezing a country precisely when it is under financial pressure;

- Providing clear and time-bound processes that foster confidence and facilitate implementation, including participation of private creditors; 

- Finding ways to bring in countries that are not currently covered by Common Framework by expanding is perimeter.

More broadly, she pointed out that the G20 is crucial to sustain the momentum on collective efforts to deliver on global ambitions for the common good. This includes focusing on amplifying the effect of the historic $650 billion SDR allocation by channeling as much of it as possible to where the need is greatest.

(With input from IMF)