As climate change fuels stronger storms, floods, cyclones and earthquakes, the International Monetary Fund (IMF) is increasingly becoming a financial lifeline for disaster-hit economies. A new study by IMF researchers Pedro Juarros and Junko Mochizuki finds that rapid IMF emergency financing can significantly speed up economic recovery after natural disasters, especially in vulnerable island nations with limited financial resources.
The research, published by the IMF’s Fiscal Affairs Department, examines how emergency funding programmes helped countries rebuild after catastrophic events between 2001 and 2019. The study focuses on IMF facilities designed for fast support, including the Rapid Credit Facility (RCF), Rapid Financing…