First, read a news story from the newspaper or the Internet.? Answer the following questions regarding your news story: 1) What is the main issue, who are the main actor

Kristalina Georgieva, CEO of the World Bank Group, in Nairobi on Thursday © Bloomberg

Tom Wilson in Nairobi MARCH 14 2019

The World Bank will press ahead with efforts to tackle climate change despite the US withdrawal from the Paris accord and the likely appointment of a senior Trump administration official at the helm of the institution, according to its interim president, Kristalina Georgieva.

The US is the biggest shareholder in the World Bank and a big influence on the multilateral lender, making President Donald Trump’s decision in 2017 to exit the Paris agreement a potential problem

Environment

World Bank chief says no rift with US over climate change

Kristalina Georgieva insists commitments will not change despite Trump scepticism

for the institution.

But Ms Georgieva said that, despite Mr Trump’s well-publicised scepticism, the US had not sought to shift World Bank policies on climate action, which were fundamental to its programmes.

“The US, as a shareholder, has signed on to our capital increase package, including climate action,” Ms Georgieva told the Financial Times in an interview in Nairobi.

Measures approved last year by shareholders included a $13bn capital increase, internal reforms and new climate change commitments. The World Bank in December also doubled its five-year commitment to fund climate action investments to $200bn between 2021-2025 with the full support of the US, she said.

Concern over the Trump administration’s potential influence over the Bank and its commitment to climate funding hardened last month when Mr Trump nominated senior US Treasury official David Malpass as the American choice to replace World Bank president Jim Yong Kim, who stepped down in February.

The World Bank confirmed on Thursday that Mr Malpass was the sole candidate, alhough he must still

be interviewed by the Bank’s board.

Ms Georgieva, the Bank’s chief executive since 2017 who took over as interim president from Mr Kim, declined to comment on Mr Malpass’s candidacy before the board had taken a decision.

She added, however, that a commitment to multilateralism and tackling climate change were fundamental to the bank’s mission.

The US, as a shareholder, has signed on to our capital increase package, including climate action

Kristalina Georgieva

Officials in Washington have told the FT that, in consultations with different countries about his candidacy in recent weeks, Mr Malpass has sought to reassure them that the World Bank would stick to its environmental obligations under his watch.

Nonetheless, some officials remain concerned that Mr Malpass could more subtly undermine the World Bank’s climate change work — or at least not emphasise it as heavily as Mr Kim did.

Ms Georgieva was in Nairobi for the One Planet Summit, which was launched by French president Emmanuel Macron in reaction to the US decision to withdraw from the Paris accord and drive its implementation.

Speaking alongside Mr Macron and other heads of state including Kenya’s President Uhuru Kenyatta, Ms Georgieva said the World Bank would more than double its commitment to funding climate adaptation and mitigation in Africa from 2021-2015 to $22.5bn.

The World Bank’s push on climate funding comes as global carbon dioxide emissions reached a new high last year, with particularly devastating effects in Africa, where countries were being struck by prolonged droughts and violent storms. The past five years have recorded the warmest global average temperatures since modern records began, with temperatures around 1C warmer than pre-industrial times on average.

As emissions continue to rise, the focus of the bank — and other multilateral development banks — is starting to shift from not just reducing emissions, but also dealing with the consequences of living in a warmer world. These measures can include scenarios such as adapting to sea-level rise, or preparing for shifting patterns of precipitation.

“This is not a defeat, this is defence to what is already happening,” Ms Georgieva said. “More frequent and more severe weather-related events, more droughts, more floods, more storms.”

She added: “We are likely to see 100m more people falling into extreme poverty by 2030 . . . By 2050, 143m climate refugees, unless we deal more seriously with these shocks.”

Copyright The Financial Times Limited 2019. All rights reserved.

Additional reporting by James Politi in Washington and Leslie Hook in London

Transcript of April 2021 World Economic Outlook Press Briefing April 6, 2021

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A B O U T R E S E A R C H C O U N T R I E S C A P A C I T Y D E V E L O P M E N T N E W S

V I D E O S D A T A P U B L I C A T I O N S C O V I D – 1 9

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SPEAKERS:

Gita Gopinath, Chief Economist and Director of the Research Department, IMF

Petya Kovea-Brooks, Deputy Director, Research Department, IMF

Malhar Shyam Nabar, Division Chief, Research Department, IMF

Moderator: Raphael Anspach, Senior Communications officer, Communications Department, IMF

R a p h a e l A n s p a c h : R a p h a e l A n s p a c h : Good morning and welcome to the International Monetary Fund's press conference on the April 2021 World Economic Outlook. Delighted that you could join us. We hope that you are doing well and staying safe as the pandemic continues to affect us all. I'm Raphael Anspach with the Communications Department, and I'm happy to be joined by my colleagues of the research department to present the report and answer your questions. Gita Gopinath. she's the economic counselor of the IMF and the director of the IMF Research Department, Petya Kova Brooks, deputy director of the IMF's research department and Malhar Nabar Division Chief of the research department at the IMF.

Gita will start us off with some introductory remarks and then we'll be happy to turn to your questions. With that Gita, the floor is yours.

G i t a G o p i n a t h : G i t a G o p i n a t h : Thank you, Raphael, and welcome to this April World Economic Outlook. It is one year into the Covid-19 pandemic, and the global community still confronts extreme social and economic strain as a human toll rises and millions remain unemployed.

Yet even with high uncertainty about the path of the pandemic, a way out of this health and economic crisis is increasingly visible. Thanks to the ingenuity of the scientific community, hundreds and millions of people are being vaccinated, and this is expected to power recoveries in many countries later this year. Economies also continue to adapt to new ways of working, despite reduced mobility, leading to a stronger than anticipated rebound across regions. Additional fiscal support in large economies, particularly the United States, has further improved the outlook. We are now projecting a stronger recovery for the global economy compared with our January forecast, with growth projected to be 6 percent in 2021 and 4.4 percent in 2022 after an estimated historic contraction of -3.3 percent in 2020. Nonetheless, the future presents daunting challenges. The pandemic is yet to be defeated and virus cases are accelerating in many countries. Recoveries are also diverging dangerously across and within countries as economies with slower vaccine roll out, more limited policy support and more reliant on tourism do less well. The upgrades in global growth for 2021 and 2022 are mainly due to upgrades for advanced economies, particularly to a sizable upgrade for the United States that is expected to grow at 6.4 percent this year. Now, this makes the United States the only large economy projected to surpass the level of GDP it was forecast to have in 2022 in the absence of this pandemic.

Other advanced economies, including the euro area, will also rebound this year, but at a slower pace among emerging markets and developing economies. China is projected to grow this year at 8.4 percent. Now, while China's economy had already returned to pre pandemic GDP in 2020, many other countries are not expected to do so until 2023.

Now these diverging recovery paths are likely to create wider gaps in living standards across countries compared to pre pandemic expectations. The average annual loss in per capita GDP over 2020 to 24 relative to pre pandemic forecasts is projected to be 5.7 percent in low income countries and 4.7

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percent in emerging markets. While in advanced economies, the losses are expected to be smaller at 2.3 percent. Such losses are reversing gains in poverty reduction, with an additional 95 million people expected to have entered the ranks of the extreme poor in 2020 compared with pre pandemic projections.

Uneven recoveries are also occurring within countries as young and low skilled workers and women remain more heavily affected. Now, because the crisis has accelerated the transformative forces of digitalization and automation, many of the jobs lost are unlikely to return, requiring worker reallocation across sectors which unfortunately often comes with severe earning penalties.

Swift policy action worldwide, including 16 trillion dollars in fiscal support, prevented far worse outcomes. Our estimates suggest last year's severe collapse could have been three times worse had it not been for such support. Now, because the financial crisis was averted, medium term losses are expected to be smaller, though still substantial then after the global financial crisis at around 3 percent. However, unlike after the 2008 crisis, this time it is emerging markets and low-income countries that are expected to suffer greater scarring given their more limited policy space.

Now, a high degree of uncertainty surrounds the projections. Faster progress with vaccinations can uplift the forecast, while a more prolonged pandemic with virus variants that evade vaccines can lead to a sharp downgrade. Multispeed recoveries could pose financial risks if interest rates in the United States rise further in unexpected ways. This could cause inflated asset valuations to unwind in a disorderly manner, financial conditions to tighten sharply and recovery prospects to deteriorate, especially for some highly leveraged emerging markets and developing economies.

Now policymakers will need to continue supporting their economies while dealing with more limited policy space and higher debt levels than prior to the pandemic. This requires better targeted measures to leave space for prolonged support of needed. With multi speed recoveries, a tailored approach is necessary with policies well calibrated at this stage of the pandemic, the strength of the economic recovery and the structural characteristics of individual countries. Right now, the emphasis should be on escaping the health crisis by prioritizing health care spending on vaccinations, treatments, healthcare infrastructure. Fiscal support should be well targeted to affected households and firms, and monetary policy should remain accommodative while proactively addressing financial stability risks. Now, as a pandemic is beaten back and labor market conditions normalize, support such as worker retention measures should be gradually scaled back. At that point, more emphasis should be placed on reallocating workers, including through targeted hiring subsidies and reskilling of workers. Now, as exceptional measures such as a moratorium on loan payments are withdrawn from insolvencies could rise sharply and put 1 in 10 jobs at risk in many countries. To limit long term damage, countries should consider converting previous liquidity support into equity like support for viable firms, while developing out-of-court restructuring frameworks to expedite eventual bankruptcies.

Resources should also be devoted to helping children catch up on lost instructional time during the pandemic. Now, once the health crisis is over, policy efforts can focus more on building resilient, inclusive and greener economies, both to bolster the recovery and to raise potential output. The priority should include green infrastructure investment to help mitigate climate change, digital infrastructure investment to boost productive capacity and strengthening social assistance to arrest rising inequality. Financing these endeavors will be more difficult for economies with limited fiscal space. In such cases, improving tax capacity, increasing tax progressivity, deploying carbon pricing, and eliminating wasteful expenditures will be essential. All countries should anchor policies, in credible medium-term frameworks and adhere to the highest standards of transparency to help contain borrowing costs and eventually reduce debt and rebuild buffers for the future.

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On the international stage, first and foremost, countries need to work together to ensure universal vaccination. While some countries will get to widespread vaccinations by the summer, most will likely have to wait till the end of next year. Speeding up vaccinations will require ramping up vaccine production and distribution, avoiding export controls, fully funding COVAX facility and ensuring equitable global transfers of excess doses.

Policymakers should also continue to ensure adequate access to international liquidity. The major central bank should provide clear guidance on future actions with ample time to prepare to avoid taper tantrum kinds of episodes, as occurred in 2013. Low income countries will benefit from further extending the pause on debt repayments under the debts service suspension initiative and operationalizing the G20 common framework for orderly debt restructuring.

A new allocation of the IMF special drawing rights will provide needed liquidity protection in what is still highly uncertain times. Now, even while all eyes are on the pandemic, it's essential that progress is made in resolving trade and technology tensions and countries will need to cooperate on climate change mitigation, on modernizing Internet and modernizing international corporate taxation.

Over the past year, we have seen significant innovations in economic policy and massively scaled up support at the national level, particularly among advanced economies that have been able to afford these initiatives. A similarly ambitious effort is now needed at the multilateral level to secure the recovery and build forward better. Without additional effort to give all people a fair shot, across country, gaps in living standards could widen significantly, and decades long progress in global poverty reduction could reverse.

Q u e s t i o n : W h a t a r e t h e c h a n g e s t o y o u r p o l i c y r e c o m m e n d a t i o n s s i n c e Q u e s t i o n : W h a t a r e t h e c h a n g e s t o y o u r p o l i c y r e c o m m e n d a t i o n s s i n c e y o u r l a s t W E Oy o u r l a s t W E O i n O c t o b e r ? A n d h a s t h e e c o n o m i c p o l i c y t o o l k i t n e e d e d t o i n O c t o b e r ? A n d h a s t h e e c o n o m i c p o l i c y t o o l k i t n e e d e d t o a d d r e s s t h e c r i s i s , h a s i ta d d r e s s t h e c r i s i s , h a s i t b e e n a d a p t e d o r d o e s i t n e e d t o b e a d a p t e d ?b e e n a d a p t e d o r d o e s i t n e e d t o b e a d a p t e d ?

G i t a G o p i n a t h : G i t a G o p i n a t h : So thank you. Yes, indeed. The crisis has evolved over time and what we are seeing is multi speed recoveries around the world. What that means is that countries that had very different stages, both in terms of the pandemic but also in terms of their recovery and how quickly they're coming back to pre covid GDP levels. So that's why we emphasize that now it's important for countries to take a tailored approach which is specific to where they are in terms of the speed of the recovery and in terms of the country specific characteristics. For instance, how much do you rely on tourism? Because we know that that's going to be affected for a longer period. A second policy implication is that support should be well targeted because this is obviously a pandemic that has gone on for much longer than one might have expected and support would be needed for a while. So to be able to flexibly respond to providing support if in case there are future waves of this pandemic, you need to have well targeted measures so that you have the space to provide the support. Now, I think it's fair to note that the large amount of support that was provided and has been provided so far prevented much worse outcomes. And like we said, the recession in 2020 would have been three times as large if it was not for all these measures. So, I believe a lot has been done, but policy support will need to be continued in a flexible, tailored and targeted manner.

Q u e s t i o n : W h a t d o e s t h e I M F t h i n k a b o u t S e c r e t a r y Y e l l e n c a l l y e s t e r d a y Q u e s t i o n : W h a t d o e s t h e I M F t h i n k a b o u t S e c r e t a r y Y e l l e n c a l l y e s t e r d a y f o r a g l o b a lf o r a g l o b a l m i n i m u m c o r p o r a t e t a x ?m i n i m u m c o r p o r a t e t a x ?

G i t a G o p i n a t h : G i t a G o p i n a t h : We have for long been in favor of a common global corporate minimum tax. It is a big concern that we have a large amount of tax shifting, tax avoidance, countries sending money to tax havens, and that's reducing the tax base from which governments can collect revenues and do the

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necessary social and economic spending that's required. So we are very much in favor of a global minimum corporate tax.

Q u e s t i o n : F u r t h e r o n t h e t a x q u e s t i o n , G i t a , s o t h e a n d t h e r e a r e Q u e s t i o n : F u r t h e r o n t h e t a x q u e s t i o n , G i t a , s o t h e a n d t h e r e a r e p e o p l e , y o u k n o w ,p e o p l e , y o u k n o w , i n c l u d i n g t h e U . S . C h a m b e r o f C o m m e r c e , t h a t s a y t h a t i n c l u d i n g t h e U . S . C h a m b e r o f C o m m e r c e , t h a t s a y t h a t t h e B i d e n a d m i n i s t r a t i o n ' s c a l lt h e B i d e n a d m i n i s t r a t i o n ' s c a l l f o r r a i s i n g t h e c o r p o r a t e t a x c o u l d f o r r a i s i n g t h e c o r p o r a t e t a x c o u l d l e a d t o c o m p a n i e s l e a v i n g t h e U n i t e d S t a t e s a n dl e a d t o c o m p a n i e s l e a v i n g t h e U n i t e d S t a t e s a n d c o u l d s l o w t h e U . S . c o u l d s l o w t h e U . S . e c o n o m y . H a v e y o u h a d a c h a n c e t o l o o k a t t h a t y e t ? A n d w h a t i se c o n o m y . H a v e y o u h a d a c h a n c e t o l o o k a t t h a t y e t ? A n d w h a t i s y o u r y o u r t h i n k i n g a b o u t t h a t a s d i s t i n c t f r o m Y e l l e n ' s c a l l f o r a g l o b a l m i n i m u m t h i n k i n g a b o u t t h a t a s d i s t i n c t f r o m Y e l l e n ' s c a l l f o r a g l o b a l m i n i m u m t a x ?t a x ?

G i t a G o p i n a t h : G i t a G o p i n a t h : We still have to study very carefully this the new proposal from the Biden administration. So it's a bit premature for us to talk about what the effect would be if the tax rates went up from 21 percent to 28 percent. We did have a pretty careful study of what happened the last time around, which is when you had the corporate tax cut from 35 percent to 21 percent. And in that time, at least when you look at the evidence, the impact, for instance, on investment was not that large. So the kind of the standard supply side impulses that you would expect were somewhat weaker than we would have thought ex-ante. But again, let's see. You know, we'll have to say this is a little more carefully for this current round.

Q u e s t i o n : I n t h e f i s c a l m o n i t o r t o y o u , r a i s e d t h e p o s s i b i l i t y o f , y o u Q u e s t i o n : I n t h e f i s c a l m o n i t o r t o y o u , r a i s e d t h e p o s s i b i l i t y o f , y o u k n o w , s o r t o fk n o w , s o r t o f m o r e p r o g r e s s i v e i n c o m e t a x e s . Y o u a l s o t a l k a b o u t m o r e p r o g r e s s i v e i n c o m e t a x e s . Y o u a l s o t a l k a b o u t p o s s i b l y e v e n a w e a l t h t a x a n dp o s s i b l y e v e n a w e a l t h t a x a n d e n s u r i n g t h a t c o m p a n i e s r e a l l y d o c h i p e n s u r i n g t h a t c o m p a n i e s r e a l l y d o c h i p i n . I m e a n , d o y o u h a v e a s u g g e s t i o n f o r t h i si n . I m e a n , d o y o u h a v e a s u g g e s t i o n f o r t h i s O E C D d i s c u s s i o n a b o u t O E C D d i s c u s s i o n a b o u t w h a t t h e g l o b a l m i n i m u m t a x s h o u l d b e t o e n s u r e t h a tw h a t t h e g l o b a l m i n i m u m t a x s h o u l d b e t o e n s u r e t h a t c o m p a n i e s a r e c o m p a n i e s a r e h e l p i n g f u n d t h e n e c e s s a r y s o c i a l s a f e t y n e t , b u t a l s o c l i m a t eh e l p i n g f u n d t h e n e c e s s a r y s o c i a l s a f e t y n e t , b u t a l s o c l i m a t e i n v e s t m e n t s ?i n v e s t m e n t s ?

G i t a G o p i n a t h : G i t a G o p i n a t h : The simple answer is no. I don't have a number for you at this point. Again, like I said, we are we are studying this. Now governments will need to build back their fiscal positions after this crisis. The hope is that they will build forward better to have more inclusive, sustainable green economies. And that would require measures both on the revenue side and on the expenditure side. And again, for some countries, it would mean increasing tax capacity. And for some others it would involve a progressivity of taxes. So, again, it's going to be a tailored response.

Q u e s t i o n : Y e s , g o o d m o r n i n g . I w a n t e d t o a s k t h e s e q u e s t i o n s a b o u t Q u e s t i o n : Y e s , g o o d m o r n i n g . I w a n t e d t o a s k t h e s e q u e s t i o n s a b o u t [ y o u r v i e w s ] o n[ y o u r v i e w s ] o n U S p r o p o s a l s . I k n o w i n J a n u a r y y o u h a d s t u d i e d t h e U S p r o p o s a l s . I k n o w i n J a n u a r y y o u h a d s t u d i e d t h e i m p a c t o f a r e c e n t l y p a s s e di m p a c t o f a r e c e n t l y p a s s e d U S $ 1 . 9 t r i l l i o n s t i m u l u s p r o p o s a l b y t h e U S $ 1 . 9 t r i l l i o n s t i m u l u s p r o p o s a l b y t h e B i d e n a d m i n i s t r a t i o n . I a m c u r i o u s a b o u t t h eB i d e n a d m i n i s t r a t i o n . I a m c u r i o u s a b o u t t h e I M F s s t u d y t h u s f a r o f t h e I M F s s t u d y t h u s f a r o f t h e 2 t r i l l i o n i n f r a s t r u c t u r e p r o p o s a l a n d h o w m u c h t h a t w o u l d2 t r i l l i o n i n f r a s t r u c t u r e p r o p o s a l a n d h o w m u c h t h a t w o u l d i m p a c t i f i m p a c t i f t h a t w e r e t o b e p a s s e d ?t h a t w e r e t o b e p a s s e d ?

G i t a G o p i n a t h : G i t a G o p i n a t h : We don't have a number for you, so we are still working on it. We don't have an estimate at this point. We certainly support the idea of needed public infrastructure investments. We have again, been calling for that in all aspects in terms of roads and bridges, water, telecommunications. So, that would be very, quite welcome. And also, the green focus is, again, something that we would support. Now, of course, our research points very strongly to the need for carbon pricing to successfully attain climate mitigation goals. And the current proposal doesn't have that. So I would say that that's one area that I hope the administration will look into more, which is on carbon pricing.

Q u e s t i o n : T o w h a t e x t e n t t h e a n t i c i p a t e d r i s e i n U . S . i n t e r e s t r a t e s Q u e s t i o n : T o w h a t e x t e n t t h e a n t i c i p a t e d r i s e i n U . S . i n t e r e s t r a t e s c o u l d a f f e c t t h ec o u l d a f f e c t t h e p e r f o r m a n c e o f t h e e c o n o m i c a c t i v i t y i n t h e M i d d l e p e r f o r m a n c e o f t h e e c o n o m i c a c t i v i t y i n t h e M i d d l e E a s t a n d f o r t h e d e v e l o p i n gE a s t a n d f o r t h e d e v e l o p i n g c o u n t r i e s a s w e l l ?c o u n t r i e s a s w e l l ?

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G i t a G o p i n a t h : G i t a G o p i n a t h : So we have to look at the rise in interest rates in the context of the global recovery, and especially with the very strong recovery projected for the U.S.. And so, we've actually researched this and we have an analytical chapter in a spillover chapter in this world economic outlook which goes into this. And what we see is that, you know, obviously when there's better growth that has positive benefits for U.S. trading partners, and that is one positive effect that outweighs the effect of rising interest rates. So, as long as the increase in interest rates is orderly, it remains low, the spreads that we are seeing in emerging and developing economies, you know, even in the Middle East, are mostly well behaved. And so, in that particular environment, we should see that, financial conditions should remain fairly accommodative. But, of course, there is important reasons to be concerned. When we have multispeed recoveries, if it so happens that interest rates start going up much faster, there is a loss in risk appetite then that can have a sharp effect on portfolio flows to all parts of the world, including the Middle East. And that is indeed one of our downside risks that we have. But, again, we have to keep in mind the balance, the fact that there is positive growth and then and there are many countries that have much larger foreign exchange reserves than they did during the 2013 taper tantrum episode. But on the other hand, they have higher levels of debt and fiscal needs. So, I think our assumption is the financial conditions will remain well behaved. But there are certainly there are downside risks, too.

Q u e s t i o n : O n e r e l a t e d q u e s t i o n s h o u l d n ' t t h e F e d s t a r t t o p u l l b a c k i t s Q u e s t i o n : O n e r e l a t e d q u e s t i o n s h o u l d n ' t t h e F e d s t a r t t o p u l l b a c k i t s e a s i n g ? D o n ' te a s i n g ? D o n ' t y o u s e e i t a s a p r u d e n t r i s k m a n a g e m e n t ?y o u s e e i t a s a p r u d e n t r i s k m a n a g e m e n t ?

G i t a G o p i n a t h : G i t a G o p i n a t h : Well, at this point, the Fed has made quite clear that the risk that they are still worried about is off, not durably attaining their inflation goals. Inflation and employment goals. And that's the reason why they plan to stay on hold for some time because they know there's distance to travel. I think what's different from the past, when you said that you would move in the expectation that maybe inflation would go up, I mean, this time the statement is that they would wait to actually see inflation reach their target. So, again, given the mandate, the policy of moving gradually is consistent. Of course, they have, of course, also pledged to kind of give sufficient advance warning if they were to reverse course, be it asset purchases or be it interest rate hikes. And again, we expect that that will happen.

Q u e s t i o n : A c o u p l e o f q u e s t i o n s h e r e o n A f r i c a . C a n y o u t a l k a l i t t l e Q u e s t i o n : A c o u p l e o f q u e s t i o n s h e r e o n A f r i c a . C a n y o u t a l k a l i t t l e b i t m o r eb i t m o r e s p e c i f i c a l l y a b o u t t h e s i t u a t i o n i n s u b – S a h a r a n A f r i c a ? [ W h a t s p e c i f i c a l l y a b o u t t h e s i t u a t i o n i n s u b – S a h a r a n A f r i c a ? [ W h a t i s ] y o u r a s s e s s m e n t , h o wi s ] y o u r a s s e s s m e n t , h o w m u c h o f t h e n e w S D R a l l o c a t i o n w o u l d t h e m u c h o f t h e n e w S D R a l l o c a t i o n w o u l d t h e A f r i c a n c o u n t r i e s n e e d t o r e s t a r t t h e i rA f r i c a n c o u n t r i e s n e e d t o r e s t a r t t h e i r e c o n o m i e s ?e c o n o m i e s ?

G i t a G o p i n a t h : G i t a G o p i n a t h : Thank you. I'm going to hand it over to my colleague Malhar here. But before I do that, just to mention, in terms of the SDR allocation, we expect about 21 billion of that to go to low income countries. So, an important share will also go to sub-Saharan Africa. But more broadly, I don't have the exact number for sub-Saharan Africa. But let me hand it over to a Malhar Nabar.

M a l h a r N a b a r : M a l h a r N a b a r : Thanks, Gita. On the overall situation in sub-Saharan Africa. Last year, the region experienced the historic contraction of negative one point nine percent. But we expect a recovery to resume this year with growth close to three and a half percent and that for that to continue next year. Now, within the region, of course, there are huge differences in countries circumstances, the tourism dependent economies such as Seychelles and Rishis. Have been particularly hard hit with the collapse of cross-border travel and the collapse of cross-border tourism, the other resource dependent economies are also in a tight spot, whereas the more diversified economies seem to be recovering a bit faster than the others. The region as a whole entered this crisis with high levels of debt vulnerabilities. The decline in revenues with the pandemic and the increase in crisis related spending

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has, of course, made that situation even more difficult. And a lot of effort will be needed to help countries in this region regain the paths of convergence that they were on before the crisis hit. And that must come from the international co

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