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Pandemic, conflict could leave scars on low-income countries

By Zhou Lanxu | chinadaily.com.cn | Updated: 2022-04-28 20:14
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Daily wage workers and homeless people wait on the banks of Yamuna river as police officers arrange buses to transfer them to a shelter, after India extended a nationwide lockdown to slow the spreading of the novel coronavirus, in the old quarters of Delhi, India, on April 15, 2020. [Photo/Agencies]

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.

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