The struggle of emerging-market nations to claw their way out of pandemic-induced the economic crisis can spill over to hurt the developed world, which should be doing all it can to ensure better access to vaccines and a more equitable recovery, the head of the International Monetary Fund (IMF) said. “That is not only danger for them, it is a danger for global supply chains, it’s a danger for investor confidence – in other words, it has a ricochet impact on advanced economies,” she said. “Closing our eyes to this divergence can harm not only those countries and their people, which is bad enough. She said even a relatively small increase in interest rates, combined with a possibly stronger dollar, could create problems for corporate and sovereign debt, which was high even before the crisis. We have to step up and then shrink this very dangerous divergence,” she said.

Source: Irish Independent May 26, 2021 01:30 UTC