IMF Speaks: World Economy Loses $3.7 Trillion Due to Pandemic and Economic Shocks

As World Leaders Head to Morocco, IMF Leader Raises Growth and Debt Challenges

Successive shocks since 2020 lost the world economy $3.7 trillion and poor countries are hit the hardest, noted IMF Managing Director Kristalina Georgieva. Georgieva delivered the annual curtain-raiser speech in Abidjan, Cote d’Ivoire, ahead of the upcoming Morocco IMF, G20 and World Bank Annual Meetings.

“Georgieva highlights that most of the world is worse off since the pandemic began,” said Eric LeCompte, Executive Director of the religious development organization Jubilee USA Network. LeCompte will participate in the upcoming Morocco meetings. “More people have become poor and inequality has gotten worse.”

According to the IMF, global economic growth remains below the 3.8 percent average of the two decades before the pandemic. 

Georgieva shared in her speech that more than half of low-income countries and one-fifth of emerging economies remain at high risk of debt crisis.

“At least 60 countries are in debt crises,” stated LeCompte who serves on United Nations expert groups on global debt. “As we head to Morocco meetings, world leaders can help solve the debt crisis or continue to do too little, too late."

Georgieva underscored the IMF deployment of $1 trillion since the pandemic, including Special Drawing Rights – an emergency currency that the IMF issued in 2021. She called for increasing IMF resources.

“Special Drawing Rights played a critical role in addressing the pandemic and rising global poverty," stated LeCompte. "Our world needs more aid like this as soon as possible."