U.S.-China cooperation vital for faster global recovery: IMF chief

Cooperation between the United States and China, the world’s two largest economies, would be vital for a faster global recovery from the COVID-19 pandemic, Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva said on Thursday.

“What we see today is the U.S. and China being the two engines that are powering up the world economy. They are the first to be able to reach their pre-COVID levels among the large economies,” Georgieva told Xinhua at a virtual press conference after a meeting of the International Monetary and Financial Committee (IMFC), the policy-setting body of the IMF.

“Like the engines on a plane on which we are all passengers, it is important that they work in sync. Then we can fly faster, and we can get farther,” she said.

Georgieva noted that she was “very encouraged” to see a very consistent view expressed by the United States and China on prospects for the recovery and their recognition of the responsibility they have for positive spillover impacts, as well as to recognize their significant roles.

“Other economies are also coming up, and that global cooperation, paying attention to who may be falling behind, is what has been at the center of our meetings,” she said.

The IMFC also pledged to work together to end the pandemic everywhere and “strengthen multilateral cooperation” to ensure an inclusive and resilient global economy.

In its latest World Economic Outlook released Tuesday, the IMF projected that the global economy will grow by 6 percent in 2021, 0.5 percentage point above its January forecast.

The U.S. economy is expected to grow by 6.4 percent this year after a 3.5-percent contraction in 2020, while the Chinese economy is projected to expand by 8.4 percent in 2021 following a growth rate of 2.3 percent last year, according to the IMF.