Fighting corruption effectively can net $1 trillion in lost tax revenues or more than 1 percent of global GDP, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Wednesday
WASHINGTON (Pakistan Point News / Sputnik - 07th October, 2020) Fighting corruption effectively can net $1 trillion in lost tax revenues or more than 1 percent of global GDP, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Wednesday.
"We can gain $1 trillion in lost tax revenues. This is 1.25 percent of global GDP," Georgieva said.
The IMF chief said corruption has a significant impact on economies, especially in low-income countries, but noted that the least corrupt governments collect 4 percent of GDP more in taxes.
Georgieva pointed out that that percentage in some countries equals the volume of total investments in their health systems, which is specifically important in the current conditions of the novel coronavirus pandemic.
An encouraging development is that some countries have made a lot of progress in fighting corruption, Georgieva added.
