Pandemic, conflict could leave scars on low-income countries
The global economy is facing profound challenges brought by COVID-19 and the ongoing geopolitical conflict, possibly leaving long-term scars on some low-income countries, an official at the International Monetary Fund said.
The two shocks could intensify headwinds in terms of inflation, output, debt distress and even climate change, said Pierre-Olivier Gourinchas, IMF's economic counselor and director of the research department.
Rising commodity prices could especially affect low-income countries and poor households, he said on Wednesday while addressing the International Finance Forum 2022 Spring Meetings, which were held online.
Some low-income and emerging countries could face permanent scars due to factors such as a loss in productivity and efficiency, some of whom have seen rising debt levels, he said.
As for China, a main challenge now is the relatively large share of unvaccinated adults over the age of 75, he added.
