2020 IMF and World Bank Annual Meetings : Written Statement to the IMFC
This year’s Forum inevitably focuses on perspectives for green finance and investment in a COVID-19 and post-COVID-19 world. The pandemic has triggered a health and economic crisis of a magnitude never seen before.
Because of the COVID crisis, and unlike in 2008/09, ALL sources of financing for development are under stress - even remittances plunged. We estimate private external financing flows to developing countries to drop by USD 700 billion in 2020, a shock which will be concomitant with a fall in tax revenues, by far the largest and most sustainable source of financing in developing countries, at about USD 5 trillion every year.
During the first part of this Forum, almost a month ago, we discussed how RBC needs to be an integral part of a sustainable recovery from the COVID-19 pandemic. Today, our discussion will focus on ‘access to remedy’, which is a key aspect of the work of the National Contact Points (NCPs) for RBC.
We are currently facing one of the biggest health and economic crises in history. It is costing many lives, and threatening the stability of our democracies, our economies and our societies, with developing countries likely to be hit the hardest.
Public trust in the financial sector is crucial for market economies and social progress. Unfortunately, more than ten years after the crisis, and in spite of significant reforms, trust in financial institutions in OECD countries still remains relatively low.
We are facing myriad environmental challenges. Global temperatures have risen by almost one degree relative to pre industrial levels. Extreme weather events such as record breaking heatwaves, wildfires, heavy rains and major tropical storms are intensifying.
In finance, the ongoing digitalization process holds many promises to enhance access and improve services, including for the most vulnerable groups in society.
This year, the Forum will bring together both industry heavyweights and leading policy thinkers. We will also welcome a number of start-ups coming from across the world to present their ideas as part of the Blockchain Showcase.
The global economy is in a fragile spot. Our latest Economic Outlook projected global GDP growth to slow down to 3.2% this year and improve only to 3.4% in 2020, against a projection of 4% growth a year ago. Across all G7 economies, growth is projected to be lower this year than in 2018.