The World’s Economy Right Now

As we come to the end of one year and look forward to another, it is important to take stock of the world’s economy. And perhaps no one is better suited to highlight the stock of the globe’s finances than Vitor Gaspar, Director of the IMF’s Fiscal Affairs Department.

Three Trends are impacting the world’s finances; the great vaccine divide, the great finance divide, and climate change.

“The great vaccine divide, the great finance divide, and climate change affect everyone, but especially the poorest and most vulnerable. Sustainable inclusive development is key everywhere. It must be green and digital. National and global policy action must work hand in hand. Time is of the essence. It is urgent to invest for the longer time to ensure a durable and inclusive structural transformation. Financing is one of the essential keys. The diagnosis is clear. Action is urgent,” said Gaspar.

Gaspar explained that a significant number of countries are in debt distress or at high risk of debt distress.  He added that they need an orderly framework that will enable them access to finance for sustainable and inclusive development purposes.

“I also stressed pretty much in this presentation what I call the great finance divide. COVID 19 has hit particularly hard the people who are most vulnerable, which includes the poor and those who have constrained access to finance. In that context, making resources available to low income developing countries is extremely important to attain the Sustainable Development Goals,” said Gaspar.  

He concluded his remarks by applauding the new global deal on a minimum corporate tax set in place and emphasizing that it moves partially toward a destination principle in international taxation.

“On the international deal on corporate taxation, I would very much insist that it is a historic moment. The system that we now have was basically conceptually agreed by the League of Nations about 100 years ago. Just think about the economy 100 years ago and how much it has changed. So, the fact that we were able now to reach an agreement to reform international corporate taxation is a major breakthrough,” said Gaspar. 

To watch the full event, Click here.

Published by Editorial Team

The Asia Rising Editorial Team is made up of a multinational team of writers, content experts and journalists from around the world operating out of our Bureaus in New York, Bangkok, Toronto and while on assignment across Asia.