The IMF is fully committed to supporting our member countries, particularly the most vulnerable; we have the tools to help; and we are coordinating closely with our partner institutions.
This note provides general guidance on Resilience and Sustainability Facility (RSF) operations, including for arrangement requests and reviews. The RSF provides longer-term, affordable financing to members to help them address risks to prospective BOP stability stemming from longer-term macro critical structural challenges from climate change and pandemic preparedness. The note has benefited from early experience gained during the operationalization of the RSF; the outcome of the May 2024 RST Interim Review; the launch of the Enhanced Cooperation Framework for Scaled Up Climate Action with the World Bank; and the approval of Broad Cooperation Principles on Pandemic Preparedness in RSF operations with the World Bank and the World Health Organization.
Pension fund withdrawals, rising public debt, and the Central Bank of Chile’s pandemic liquidity injections have reshaped Chile’s financial landscape. In the context of the diminished demand for local bonds, large non-financial corporations and the government relied more on foreign investors. Overall, Chile’s financial depth has diminished, and markets have become more volatile and sensitive to shocks. Restoring pension funds as well as continuing to strengthen market resilience and crisis response capabilities are essential for ensuring future financial stability.
Did the COVID-19 pandemic zombify the economy? Commentators have pointed to the pandemic and related business support measures potentially fueling zombification. Using administrative data covering the universe of Canadian firms, we find a broad-based decline in the share of zombie firms across industries relative to pre-pandemic levels. Whereas business support measures kept firms alive and operating as non-zombie firms, the decline in the zombie firm share was caused by would-be zombie firms exiting, indicative of the pandemic’s cleansing effects. As a consequence, while aggregate labour productivity worsened in Canada over the pandemic, it was not driven by zombie firms.
Special drawing rights are providing an important boost for countries that need one, but greater support is encouraged to strengthen our unique lending tools
In the most vulnerable countries, strengthening state capacity must adapt to more frequent economic shocks, greater political instability, and fewer resources
Although global debt recorded another significant decline in 2022, it is still high, with debt sustainability remaining a concern
The August 2021 allocation of special drawing rights supported countries amid recovery from the pandemic—and continues to offer benefits
The economic gains from $272 billion in pandemic support for 94 countries were strongest in the poorest and more vulnerable recipients of IMF concessional financing
Following exceptional pandemic support, governments should foster disinflation and financial stability while protecting the most vulnerable and safeguarding public finances
With shock upon shock hitting the world economy in the last three years, IMF Managing Director Kristalina Georgieva's customary opening speech to the Annual Meetings warned of a darker global outlook and emphasized the need for the world to come together to deal with the consequences.
