The Strategist

IMF Head: We are entering global recession

03/31/2020 - 07:36

The global economy has entered a recession, said the IMF Head Kristalina Georgieva. She believes that recovery in the next year will not be possible unless the coronavirus pandemic is restrained.

by Friends of Europe
by Friends of Europe
The coronavirus has already plunged the global economy into recession, Kristalina Georgieva, managing director of the International Monetary Fund (IMF), said in an interview with CNBC. The extent to which the recession will be deep and long depends on two factors, she continued: how the authorities will restrain the spread of the virus, and how effective the response to the economic crisis will be.

Georgieva recommended that governments around the world decisively take measures to mitigate the consequences of the pandemic. “I am very encouraged by what I see now. I see a much clearer understanding [among world leaders] that if we do not conquer the crisis, we will not be able to get out of this,” she said. According to Georgieva, in the conditions of the “giant crisis” one cannot limit oneself to small measures.

Earlier in a press conference on Friday, Georgieva said emerging economies needed at least $ 2.5 trillion to overcome the pandemic. Domestic reserves and borrowing in local markets will not be enough to cover these needs, so significant funding from the IMF, other institutions and bilateral lenders will be required, Reuters writes.

Last week, the IMF announced its readiness to use its $ 1 trillion credit potential to help countries struggling with the humanitarian and economic impact of the new coronavirus.

According to Bloomberg, more than 550,000 cases of coronavirus have been detected in the world. Over 25,000 people became victims of the infection outbreak. 


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