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Summary
- The Fund says vaccinating at least 60 percent of the global population by mid-2022 can end the pandemic.
- The IMF estimates US$35 billion required in grant financing.
- A faster end to the pandemic could add US$9 trillion into the global economy by 2025 due the quicker resumption of the Global economy.
A probable end to the COVID-19 pandemic could cost US$50 billion, according to the latest report by the International Monetary Fund.
The international financial institution believes that vaccinating at least 40 percent of the global population by the end of this year and at least 60 percent by the first half of 2022 can improve these health crises.
The IMF’s report aims to reduce the gap in vaccines, diagnostics, and therapeutics in many developing countries.
According to the report, less than two percent of Africa’s population had been vaccinated as of April end, compared to over 40 percent of the population in the U.S. and 20 percent in Europe.
COVID-19: WHO warns against ‘pandemic is over’ mindset, flags vaccine shortage
A faster end to the pandemic could accelerate the resumption of economic activity, which could add US$9 trillion into the global economy by 2025, the IMF said.
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The report highlighted the need for more advance grants to COVAX, donating excess doses and removing barriers for cross-border export of critical raw materials and finished vaccines to defeat the pandemic.
Of the total US$50 billion, the IMF estimates grant financing of US$35 billion. The G20 governments have already identified the need to address the US$22 billion grant funding gap.
National governments would have to fund the remaining US$15 billion with the help of facilities created by multilateral development banks to support COVID-19 concessional financing.
Meanwhile, the IMF also noted that additional investment is needed to increase the vaccine production capacity by 1 billion doses to cover downside risks such as new variants.
Also, widespread testing and tracing are required during the interim period, where vaccine supply is limited.
The pandemic policy is also economic policy, said IMF Managing Director Kristalina Georgieva in her remarks to the Global Health Summit, adding that a “strong and coordinated action” is required to come out of this health and economic crisis.
According to the data from John Hopkins University, total COVID-19 cases reached 166.4 million globally while deaths increased to 3.4 million.
In April, the IMF raised its growth outlook for the global economy to 6 percent, up from 5.5 percent expected earlier in the year. In 2020, the economy contracted 3.3 percent.
READ MORE: IMF Raises 2021 US Growth Forecast To 6.4%
