JUDY WOODRUFF: The fiscal and monetary policies implemented by the U.S. government in the
past year, along with the falling numbers of new COVID cases, should pave the way for
a robust U.S. economic recovery, although real challenges remain. That was the general
conclusion of an annual report released today by the International Monetary Fund. It projects
that the U.S. economy will grow roughly 7 percent this year, as federal stimulus programs
fuel consumer spending. But that growth raises the risk of inflation. The report also emphasizes
that the pandemic itself remains the greatest threat to any nation and urges the U.S. to
help other countries cope with the health crisis. Kristalina Georgieva is managing director
of the International Monetary Fund and joins me now. Director Georgieva, it's so good to
have you with us again. I want to ask you about those economic projections, but let's
start with COVID and the effect it has had on the world. You and the IMF are calling
this week for countries that can afford to do so to particularly help the countries on
the African continent, sub-Saharan Africa, with more doses of the COVID vaccine. Why
is this important, and do you expect to get the help you need? KRISTALINA GEORGIEVA, Managing
Director, International Monetary Fund: It is very important for everyone everywhere.
Why? Because what we are facing in the world is a two-track vaccination path that leads
to two-track economic recovery. In the United States, vaccinations have exceeded 50 percent.
In many other advanced economies, they are going up in the territory that allows the
economies to fully reopen, whereas, in many developing countries, and especially in low-income
countries, vaccination rates are extremely low. In Africa, less than 1 percent of the
adult population is fully vaccinated, and yet we see the new Delta variant causing a
third, very rapidly going-up wave of infections in Africa. The impact of this is twofold.
One, it is holding the recovery of the world economy back and, of course, harming people
tremendously. We calculate that, if we accelerate vaccinations, if we vaccinate the world to
40 percent this year, 60 percent by the middle of next year, we will gain $9 trillion in
output between now and 2025. And 40 percent of this gain will be for advanced economies
because of this rapid recovery of the world. And, two, because, when we don't vaccinate
people, we leave patches as fertile ground for new mutations that are ricocheting back
in the developed world. JUDY WOODRUFF: Right. And what I want to ask, is the United States,
as you know, has already pledged to give 500 million doses or more to, what, over 100 of
the world's poorest countries. How much more are you asking the U.S. to do? KRISTALINA
GEORGIEVA: So far, we have gotten about a billion doses pledged to increase vaccinations
in developing countries. But we are still -- we are still significantly short. We need
11 billion doses for the world. And we need, next year, to get to an excess production
of vaccines, so we vaccinate those who need it, and we secure boosters if that becomes
necessary. So, to answer your question, U.S. is doing a very good job leading the world
with offering additional vaccines, but we need more. JUDY WOODRUFF: And it's a subject,
I know, that so many people know is important and could pursue. But I also want to talk
to you about the economy and the bounce-back from the pandemic. As I reported a moment
ago, you, the IMF today, projecting the U.S. economy will grow 7 percent, a remarkable
rate of growth, this year. What does that mean for the world? We know the entire global
economy took a big hit from this pandemic. What does this -- this improvement here in
the United States going to mean for the whole world? KRISTALINA GEORGIEVA: Let me first
recognize the two foundations for this strong growth, the stimulus that was put in place
to inject money in the hands of people and support businesses and the accelerated vaccination
push that the U.S. has been pursuing over the last months. They both lead to this remarkable
recovery that will deliver the highest growth rate in the United States since 1984, a generation
ago. What does it mean for the rest of the world? Primarily good news, because higher
growth in the United States means that the United States is going to be demanding more
goods from other nations and is, in that way, exporting some of this growth momentum. This
is why our message is very simple, vaccine policy this year, next year is economic policy.
Let's vaccinate the whole world. JUDY WOODRUFF: So, in a few words, Director Georgieva, what
should Americans, what should the United States be doing in the year, the next year, a couple
of years to come to see the world move forward in total, together, in a positive direction?
KRISTALINA GEORGIEVA: Well, first and foremost, the United States ought to continue to build
its competitiveness and the vibrancy of its economy, because, as the largest economy in
the world, when the U.S. does well, that is good for everybody. And, in this sense, we
very warmly welcome the two plans that are now under consideration, the Jobs and the
Families plans. They are going to inject more productivity, higher labor market participation
in the U.S. that would boost between 2022 and 2024 growth in U.S. by 5.25 percentage
points. And it will also take care of the people in the United States that have been
hit the hardest by this pandemic. We mean Black and Hispanic communities. So, that action
in U.S. is beneficial for the world directly and also indirectly, as a leadership as to
how tax policy and spending policy can lead to a more vibrant and fair economy in the
future. JUDY WOODRUFF: A number of policies of this administration. Kristalina Georgieva,
the managing director of the International Monetary Fund, thank you very much. KRISTALINA
GEORGIEVA: Thank you.