WASHINGTON: The International Monetary Fund (IMF) has announced the launch of the global recession over the coronavirus pandemic, saying that the situation could be worse than the 2009 financial crisis.
IMF chief Kristalina Georgieva said that the coronavirus pandemic has hit the global economy so hard that the world has entered into a recession. The economy will require massive funding to help the developing nations turn around from the downturn resulting from the pandemic, the IMF chief said.
“It is clear that we have entered a recession” that will be worse than in 2009 following the global financial crisis, she said in an online press briefing. Georgieva said the fund’s estimate “for the overall financial needs of emerging markets is $2.5 trillion.”
However, she warned that it could just be the lower end as the coronavirus has badly affected the global economy. Lockdowns, factories airlines, tourism, imports and exports around the world have destroyed the global economy.
The IMF chief predicted that many countries would go bankrupt due to the virus, more than eighty countries have applied for emergency funds to the IMF. The global financial institution said that the recession would be like 2000 or worse and the effects on the global economy will be long-lasting.
She said that the recovery in 2021 was possible only if the international community succeeds in controlling the virus everywhere. The IMF was estimating the damage to the world economy which would be completed in the next few weeks.
The IMF chief said that the main cause of economic stagnation and recession was the spread of the virus and that it was very important to take steps towards recovery. The biggest threat to the global economy’s sudden halt is a wave of bankruptcy. Unemployment is also dangerous to our economic and social systems.
The world economy is expected to suffer more than five trillion rupees, and the IMF has appealed to all countries to take emergency measures to end the coronavirus so that the recession period can be minimised.
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