WEBVTT 00:00.080 --> 00:04.540 JUDY WOODRUFF: The fiscal and monetary policies implemented by the U.S. government in the 00:04.540 --> 00:09.540 past year, along with the falling numbers of new COVID cases, should pave the way for 00:10.290 --> 00:15.290 a robust U.S. economic recovery, although real challenges remain. That was the general 00:16.170 --> 00:21.170 conclusion of an annual report released today by the International Monetary Fund. It projects 00:22.000 --> 00:27.000 that the U.S. economy will grow roughly 7 percent this year, as federal stimulus programs 00:28.070 --> 00:33.070 fuel consumer spending. But that growth raises the risk of inflation. The report also emphasizes 00:34.950 --> 00:39.950 that the pandemic itself remains the greatest threat to any nation and urges the U.S. to 00:41.410 --> 00:46.410 help other countries cope with the health crisis. Kristalina Georgieva is managing director 00:47.620 --> 00:52.620 of the International Monetary Fund and joins me now. Director Georgieva, it's so good to 00:53.180 --> 00:58.180 have you with us again. I want to ask you about those economic projections, but let's 00:58.260 --> 01:03.260 start with COVID and the effect it has had on the world. You and the IMF are calling 01:04.930 --> 01:09.930 this week for countries that can afford to do so to particularly help the countries on 01:11.150 --> 01:16.150 the African continent, sub-Saharan Africa, with more doses of the COVID vaccine. Why 01:18.721 --> 01:22.940 is this important, and do you expect to get the help you need? KRISTALINA GEORGIEVA, Managing 01:22.940 --> 01:27.940 Director, International Monetary Fund: It is very important for everyone everywhere. 01:28.080 --> 01:33.080 Why? Because what we are facing in the world is a two-track vaccination path that leads 01:36.240 --> 01:41.240 to two-track economic recovery. In the United States, vaccinations have exceeded 50 percent. 01:45.130 --> 01:50.130 In many other advanced economies, they are going up in the territory that allows the 01:52.070 --> 01:57.070 economies to fully reopen, whereas, in many developing countries, and especially in low-income 02:00.520 --> 02:05.520 countries, vaccination rates are extremely low. In Africa, less than 1 percent of the 02:09.280 --> 02:14.280 adult population is fully vaccinated, and yet we see the new Delta variant causing a 02:18.470 --> 02:23.470 third, very rapidly going-up wave of infections in Africa. The impact of this is twofold. 02:28.840 --> 02:33.840 One, it is holding the recovery of the world economy back and, of course, harming people 02:36.140 --> 02:41.140 tremendously. We calculate that, if we accelerate vaccinations, if we vaccinate the world to 02:44.610 --> 02:49.610 40 percent this year, 60 percent by the middle of next year, we will gain $9 trillion in 02:54.230 --> 02:59.230 output between now and 2025. And 40 percent of this gain will be for advanced economies 03:04.260 --> 03:09.260 because of this rapid recovery of the world. And, two, because, when we don't vaccinate 03:12.110 --> 03:17.110 people, we leave patches as fertile ground for new mutations that are ricocheting back 03:20.810 --> 03:24.560 in the developed world. JUDY WOODRUFF: Right. And what I want to ask, is the United States, 03:24.560 --> 03:29.560 as you know, has already pledged to give 500 million doses or more to, what, over 100 of 03:32.110 --> 03:36.590 the world's poorest countries. How much more are you asking the U.S. to do? KRISTALINA 03:36.590 --> 03:41.590 GEORGIEVA: So far, we have gotten about a billion doses pledged to increase vaccinations 03:44.870 --> 03:49.870 in developing countries. But we are still - - we are still significantly short. We need 03:53.709 --> 03:58.709 11 billion doses for the world. And we need, next year, to get to an excess production 04:03.030 --> 04:08.030 of vaccines, so we vaccinate those who need it, and we secure boosters if that becomes 04:11.300 --> 04:16.300 necessary. So, to answer your question, U.S. is doing a very good job leading the world 04:18.389 --> 04:23.389 with offering additional vaccines, but we need more. JUDY WOODRUFF: And it's a subject, 04:26.439 --> 04:31.439 I know, that so many people know is important and could pursue. But I also want to talk 04:31.580 --> 04:36.580 to you about the economy and the bounce-back from the pandemic. As I reported a moment 04:37.509 --> 04:42.509 ago, you, the IMF today, projecting the U.S. economy will grow 7 percent, a remarkable 04:44.330 --> 04:49.330 rate of growth, this year. What does that mean for the world? We know the entire global 04:50.639 --> 04:55.639 economy took a big hit from this pandemic. What does this -- this improvement here in 04:56.509 --> 05:01.039 the United States going to mean for the whole world? KRISTALINA GEORGIEVA: Let me first 05:01.039 --> 05:06.039 recognize the two foundations for this strong growth, the stimulus that was put in place 05:11.080 --> 05:16.080 to inject money in the hands of people and support businesses and the accelerated vaccination 05:19.749 --> 05:24.749 push that the U.S. has been pursuing over the last months. They both lead to this remarkable 05:27.259 --> 05:32.259 recovery that will deliver the highest growth rate in the United States since 1984, a generation 05:37.240 --> 05:42.240 ago. What does it mean for the rest of the world? Primarily good news, because higher 05:45.619 --> 05:50.619 growth in the United States means that the United States is going to be demanding more 05:51.309 --> 05:56.309 goods from other nations and is, in that way, exporting some of this growth momentum. This 05:59.480 --> 06:04.480 is why our message is very simple, vaccine policy this year, next year is economic policy. 06:09.659 --> 06:14.659 Let's vaccinate the whole world. JUDY WOODRUFF: So, in a few words, Director Georgieva, what 06:15.689 --> 06:20.689 should Americans, what should the United States be doing in the year, the next year, a couple 06:22.309 --> 06:27.309 of years to come to see the world move forward in total, together, in a positive direction? 06:32.379 --> 06:37.379 KRISTALINA GEORGIEVA: Well, first and foremost, the United States ought to continue to build 06:38.409 --> 06:43.409 its competitiveness and the vibrancy of its economy, because, as the largest economy in 06:44.360 --> 06:49.360 the world, when the U.S. does well, that is good for everybody. And, in this sense, we 06:50.289 --> 06:55.289 very warmly welcome the two plans that are now under consideration, the Jobs and the 06:57.779 --> 07:02.779 Families plans. They are going to inject more productivity, higher labor market participation 07:06.229 --> 07:11.229 in the U.S. that would boost between 2022 and 2024 growth in U.S. by 5.25 percentage 07:17.180 --> 07:22.180 points. And it will also take care of the people in the United States that have been 07:23.770 --> 07:28.770 hit the hardest by this pandemic. We mean Black and Hispanic communities. So, that action 07:33.399 --> 07:38.399 in U.S. is beneficial for the world directly and also indirectly, as a leadership as to 07:41.759 --> 07:46.759 how tax policy and spending policy can lead to a more vibrant and fair economy in the 07:50.639 --> 07:54.679 future. JUDY WOODRUFF: A number of policies of this administration. Kristalina Georgieva, 07:54.679 --> 07:59.419 the managing director of the International Monetary Fund, thank you very much. KRISTALINA 07:59.419 --> 07:59.900 GEORGIEVA: Thank you.