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The IMF has lowered its global economic outlook due to the Delta spike and a vaccination split

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The International Monetary Fund (IMF) modestly lowered its global economic outlook on Tuesday, citing the “great vaccination divide,” supply bottlenecks, and inflation risks as reasons for the COVID-19 spike.

“The global recovery is continuing, but progress has slowed due to the epidemic,” IMF Chief Economist Gita Gopinath said during a virtual news conference held during the IMF and World Bank Group’s annual meetings.

The IMF forecasted worldwide growth of 5.9% in 2021 in its recently issued World Economic Outlook, down 0.1 percentage points from July’s prediction, while warning that the “small headline revision” for the global economy “masks considerable downgrades” for individual nations.

Gopinath said the outlook for low-income developing nations, in particular, has “darkened considerably” due to worsening pandemic dynamics, noting that overall risks to economic prospects have increased and policy trade-offs have become “more difficult.”

According to the report, low-income developing countries are on track to grow by 3.0% this year, down 0.9 percentage point from July’s prediction.

Gopinath said the “big vaccination difference” and substantial variations in policy support are the causes of a “dangerous divergence” in economic prospects among countries, which remains a major concern.

In a remote video interview with Xinhua on Tuesday, Petya Koeva Brooks, deputy director of the IMF’s Research Department, said, “We are really concerned (about the vaccine difference) and we are doing everything we can to make the case to be clear on the numbers, which are worrying.”

“Roughly 60% of the population in advanced economies and about a third in emerging markets are completely vaccinated, but the corresponding figure for low-income countries is less than 5% of the population,” Brooks added.

The IMF asked the international community to step up efforts to guarantee that every country has equal vaccine access, to eliminate vaccine reluctance where there is sufficient supply, and to improve everyone’s economic prospects.

Recent contributions in that regard by China, the Group of Seven developed nations, and other countries are “welcome,” according to the report, though donations should be increased to quickly fulfill the obligations.

“I believe there have been promises of surplus vaccines being shared and other similar things. I believe the logistics side of things has been slow “Brooks went on to say that it’s critical to see that these donation pledges are fulfilled.

The IMF official also urged countries to implement “complimentary” measures such as treatments, testing, and contact tracing, stressing that the global lender has asked policymakers to fund $20 billion in assistance for low-income countries.

 

Source: Xinhua News Agency

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Maldivian Airways have discussed the opportunity for a joint venture with both Qatar Airways and Etihad Airways.

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UAE Etihad Airways and Qatar Airways have both shown interest in investing in Maldives National Airlines, Maldivian.

President Ibrahim Mohamed Solih publicized within last August that discussions have been proceeded to find an investor for Maldivian Airways from the Middle East area. Ethical and Qatar Airways have currently shown interest in being investors. However, apart from having shown interest in being an investor, no further discussions have been made towards any investment plans.

The resorts publicized by finance show that Island Aviation run by Maldivian Airways has faced a loss of 25.3 million Maldivian Rufiyaa in the first quarter of this year. As businesses have recovered and workload has been increased following the covid lockdowns, Maldivian pilots have expressed discontent with declining salaries. In regards to this, it has been decided to increase the pilots’ salaries to 80% for the rest of the year.

Economic Minister Fayaaz Ismail and Finance Minister Ibrahim Ameer have met with businessmen and government officials in Qatar. Some media have reported that the Ministers have had meetings with Qatar Airways Officials as well regarding investing in Maldivian Airways.

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International Monetary Fund (IMF) have advised the government to stop printing more money and decrease the debt.

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International Monetary Fund (IMF) has advised the Maldives to stop taking more money from the central bank of Maldives, and lower the debt that the country has.

During the Covid-19 pandemic and the country’s economic drop, the government had suspended some of the laws regarding printing more money and printed new money by sending a bill to the parliament and getting it approved. IMF informed that to maintain the USD rate in the Maldives at 15.42, Maldives must stop printing more money. IMF further informed that if the Maldives continues to print money, we may face an economic crisis like so in Sri Lanka.

IMF has called the Maldives to think for the big picture and plan in a 360 view of how things can be, and make strategic decisions.

IMF has estimated that while working on the economic state of the country, the inflation rate may increase by 1.4% in the Maldives. And foods and beverages price may have an increased inflation rate of 2.3% in 2022. World Bank, MMA, and Finance ministry of Maldives have estimated that the country will go back to the normal economical state by 2023.

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STELCO is planning to manufacture electric vehicles.

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STELCO has decided to build electric vehicles which are going to be a first in the Maldives.

In the opening ceremony for the STELCO ‘Stevo’ workshop, the company Managing Director Hassan Mugunee has stated that the engineers working at the company are among the most established and experienced engineers in the Maldives. On this note, Hassan Mugunee has said the company will build electric cars as a Maldivian production.

Mugunee has said that the highest number of chemicals and gases which harm the environment are released by vehicles, and as such he wants to build environmentally friendly alternatives and market them in the Maldives.

The project to build electric cars was started considering the fact that the Maldives is a country that runs multiple environment-friendly projects and to introduce environmentally friendly vehicles which are safe for the roads in the Maldives.

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