Coronavirus: IMF warns on severe recession in 2020

IMF projects negative global growth for 2020, recovery in 2021

Kristalina Georgieva, made the prediction in a statement issued after a call with G20 Finance Ministers and central bankers. "A lot more will be needed, specifically on the fiscal front", she stated.

Georgieva said that almost 80 countries around the world requested the IMF's help amid the coronavirus crisis.

"Many countries are already taking unprecedented steps".

Earlier this month, she had warned that this year's world growth would be below the 2.9 per cent rate seen last year, but stopped short of predicting a recession. But we expect a recovery in 2021 and, to reach it, it is essential to prioritize containment (of the virus) and strengthen health systems.

An economic recovery should follow next year - as long as world leaders work to get the disease under control, she said.

Georgieva called on advanced economies to provide more support to low income countries, which face a massive outflow of capital, and said the International Monetary Fund stands "ready to deploy all our $1 trillion lending capacity".

Investors have actually now gotten rid of $83 bn from emerging markets thinking about that the start of the crisis, the greatest capital outflow ever tape-recorded, Georgieva mentioned.

The IMF is particularly concerned about low-income countries in debt distress and is working closely with them to address those concerns, she added. It is also replenishing its Catastrophe Containment and Relief Trust to help the poorest countries, and looking at all other available options to support its members. "Again, we will be exploring with our executive board and membership a possible proposal that would help facilitate a broader network of swap lines, including through an IMF-swap type facility", Georgieva said.

In addition, it said several low and middle income countries have asked it to make a special drawing right allocation, as was done during the Global Financial Crisis. Final decision will be at the discretion of the Taipei Times. She mentioned that the International Monetary Fund was considering its own IMF-swap type facility.

The spread of the exceptionally contagious COVID-19 breathing illness induced by the coronavirus has actually drawn contrasts with wrecking durations such as World War II, the 2008 financial crisis, and the 1918 Spanish influenza.

He stated: "This is a moment for solidarity, which was a major theme of the meeting today of the G20 Finance Ministers and Central Bank Governors".

In contrast, the coronavirus pandemic is causing worldwide economic and human carnage, and some forecasters now say the downturn could be 1.5 percent.

In a statement released by her office in Washington, the IMF chief said that since the breakout, 80 countries had sought help from the Fund to cope with its consequences.

It urged governments across the region to swiftly draw up rescue packages to head off a protracted recession.



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