1 00:00:00,080 --> 00:00:04,540 JUDY WOODRUFF: The fiscal and monetary policies implemented by the U.S. government in the 2 00:00:04,540 --> 00:00:09,540 past year, along with the falling numbers of new COVID cases, should pave the way for 3 00:00:10,290 --> 00:00:15,290 a robust U.S. economic recovery, although real challenges remain. That was the general 4 00:00:16,170 --> 00:00:21,170 conclusion of an annual report released today by the International Monetary Fund. It projects 5 00:00:22,000 --> 00:00:27,000 that the U.S. economy will grow roughly 7 percent this year, as federal stimulus programs 6 00:00:28,070 --> 00:00:33,070 fuel consumer spending. But that growth raises the risk of inflation. The report also emphasizes 7 00:00:34,950 --> 00:00:39,950 that the pandemic itself remains the greatest threat to any nation and urges the U.S. to 8 00:00:41,410 --> 00:00:46,410 help other countries cope with the health crisis. Kristalina Georgieva is managing director 9 00:00:47,620 --> 00:00:52,620 of the International Monetary Fund and joins me now. Director Georgieva, it's so good to 10 00:00:53,180 --> 00:00:58,180 have you with us again. I want to ask you about those economic projections, but let's 11 00:00:58,260 --> 00:01:03,260 start with COVID and the effect it has had on the world. You and the IMF are calling 12 00:01:04,930 --> 00:01:09,930 this week for countries that can afford to do so to particularly help the countries on 13 00:01:11,150 --> 00:01:16,150 the African continent, sub-Saharan Africa, with more doses of the COVID vaccine. Why 14 00:01:18,721 --> 00:01:22,940 is this important, and do you expect to get the help you need? KRISTALINA GEORGIEVA, Managing 15 00:01:22,940 --> 00:01:27,940 Director, International Monetary Fund: It is very important for everyone everywhere. 16 00:01:28,080 --> 00:01:33,080 Why? Because what we are facing in the world is a two-track vaccination path that leads 17 00:01:36,240 --> 00:01:41,240 to two-track economic recovery. In the United States, vaccinations have exceeded 50 percent. 18 00:01:45,130 --> 00:01:50,130 In many other advanced economies, they are going up in the territory that allows the 19 00:01:52,070 --> 00:01:57,070 economies to fully reopen, whereas, in many developing countries, and especially in low-income 20 00:02:00,520 --> 00:02:05,520 countries, vaccination rates are extremely low. In Africa, less than 1 percent of the 21 00:02:09,280 --> 00:02:14,280 adult population is fully vaccinated, and yet we see the new Delta variant causing a 22 00:02:18,470 --> 00:02:23,470 third, very rapidly going-up wave of infections in Africa. The impact of this is twofold. 23 00:02:28,840 --> 00:02:33,840 One, it is holding the recovery of the world economy back and, of course, harming people 24 00:02:36,140 --> 00:02:41,140 tremendously. We calculate that, if we accelerate vaccinations, if we vaccinate the world to 25 00:02:44,610 --> 00:02:49,610 40 percent this year, 60 percent by the middle of next year, we will gain $9 trillion in 26 00:02:54,230 --> 00:02:59,230 output between now and 2025. And 40 percent of this gain will be for advanced economies 27 00:03:04,260 --> 00:03:09,260 because of this rapid recovery of the world. And, two, because, when we don't vaccinate 28 00:03:12,110 --> 00:03:17,110 people, we leave patches as fertile ground for new mutations that are ricocheting back 29 00:03:20,810 --> 00:03:24,560 in the developed world. JUDY WOODRUFF: Right. And what I want to ask, is the United States, 30 00:03:24,560 --> 00:03:29,560 as you know, has already pledged to give 500 million doses or more to, what, over 100 of 31 00:03:32,110 --> 00:03:36,590 the world's poorest countries. How much more are you asking the U.S. to do? KRISTALINA 32 00:03:36,590 --> 00:03:41,590 GEORGIEVA: So far, we have gotten about a billion doses pledged to increase vaccinations 33 00:03:44,870 --> 00:03:49,870 in developing countries. But we are still - - we are still significantly short. We need 34 00:03:53,709 --> 00:03:58,709 11 billion doses for the world. And we need, next year, to get to an excess production 35 00:04:03,030 --> 00:04:08,030 of vaccines, so we vaccinate those who need it, and we secure boosters if that becomes 36 00:04:11,300 --> 00:04:16,300 necessary. So, to answer your question, U.S. is doing a very good job leading the world 37 00:04:18,389 --> 00:04:23,389 with offering additional vaccines, but we need more. JUDY WOODRUFF: And it's a subject, 38 00:04:26,439 --> 00:04:31,439 I know, that so many people know is important and could pursue. But I also want to talk 39 00:04:31,580 --> 00:04:36,580 to you about the economy and the bounce-back from the pandemic. As I reported a moment 40 00:04:37,509 --> 00:04:42,509 ago, you, the IMF today, projecting the U.S. economy will grow 7 percent, a remarkable 41 00:04:44,330 --> 00:04:49,330 rate of growth, this year. What does that mean for the world? We know the entire global 42 00:04:50,639 --> 00:04:55,639 economy took a big hit from this pandemic. What does this -- this improvement here in 43 00:04:56,509 --> 00:05:01,039 the United States going to mean for the whole world? KRISTALINA GEORGIEVA: Let me first 44 00:05:01,039 --> 00:05:06,039 recognize the two foundations for this strong growth, the stimulus that was put in place 45 00:05:11,080 --> 00:05:16,080 to inject money in the hands of people and support businesses and the accelerated vaccination 46 00:05:19,749 --> 00:05:24,749 push that the U.S. has been pursuing over the last months. They both lead to this remarkable 47 00:05:27,259 --> 00:05:32,259 recovery that will deliver the highest growth rate in the United States since 1984, a generation 48 00:05:37,240 --> 00:05:42,240 ago. What does it mean for the rest of the world? Primarily good news, because higher 49 00:05:45,619 --> 00:05:50,619 growth in the United States means that the United States is going to be demanding more 50 00:05:51,309 --> 00:05:56,309 goods from other nations and is, in that way, exporting some of this growth momentum. This 51 00:05:59,480 --> 00:06:04,480 is why our message is very simple, vaccine policy this year, next year is economic policy. 52 00:06:09,659 --> 00:06:14,659 Let's vaccinate the whole world. JUDY WOODRUFF: So, in a few words, Director Georgieva, what 53 00:06:15,689 --> 00:06:20,689 should Americans, what should the United States be doing in the year, the next year, a couple 54 00:06:22,309 --> 00:06:27,309 of years to come to see the world move forward in total, together, in a positive direction? 55 00:06:32,379 --> 00:06:37,379 KRISTALINA GEORGIEVA: Well, first and foremost, the United States ought to continue to build 56 00:06:38,409 --> 00:06:43,409 its competitiveness and the vibrancy of its economy, because, as the largest economy in 57 00:06:44,360 --> 00:06:49,360 the world, when the U.S. does well, that is good for everybody. And, in this sense, we 58 00:06:50,289 --> 00:06:55,289 very warmly welcome the two plans that are now under consideration, the Jobs and the 59 00:06:57,779 --> 00:07:02,779 Families plans. They are going to inject more productivity, higher labor market participation 60 00:07:06,229 --> 00:07:11,229 in the U.S. that would boost between 2022 and 2024 growth in U.S. by 5.25 percentage 61 00:07:17,180 --> 00:07:22,180 points. And it will also take care of the people in the United States that have been 62 00:07:23,770 --> 00:07:28,770 hit the hardest by this pandemic. We mean Black and Hispanic communities. So, that action 63 00:07:33,399 --> 00:07:38,399 in U.S. is beneficial for the world directly and also indirectly, as a leadership as to 64 00:07:41,759 --> 00:07:46,759 how tax policy and spending policy can lead to a more vibrant and fair economy in the 65 00:07:50,639 --> 00:07:54,679 future. JUDY WOODRUFF: A number of policies of this administration. Kristalina Georgieva, 66 00:07:54,679 --> 00:07:59,419 the managing director of the International Monetary Fund, thank you very much. KRISTALINA 67 00:07:59,419 --> 00:07:59,900 GEORGIEVA: Thank you.