The global economy plunged into recession, at least not less, than in 2009, said the managing Director of the International monetary Fund (IMF), Kristalina Georgieva, reports RBC.
“The decline in 2020 is expected to be pretty deep,” said the head of the IMF, in a briefing, warning that the recovery in 2021 can begin only if we succeed to contain the spread of coronavirus infection COVID-19.
Special threat Georgieva sees the possibility of a wave of bankruptcies and job cuts, which may not only undermine the economy’s ability to recover, but to destroy the very fabric of society.
In this regard, the head of the IMF urged all countries “aggressive” to oppose the spread of the disease and to support the economy, to reduce the period of global recession and to prevent a too deep drop.
According to Georgieva, the IMF has recorded an unprecedented surge in requests for emergency funding, such requests have already submitted about 80 countries, although so far the IMF has never considered more than a few requests at the same time.
“We see a wide range of problems arising in emerging markets: the spread of the virus, stop the economy, the outflow of capital and — for exporters of raw materials — price shock,” said Georgieva. According to her, many of the emerging market countries faced problems because of the reduction of currency proceeds, which provided the influx of tourists and the export of certain goods. The total demand from the developing markets in financing the IMF is estimated at $2.5 trillion. Its own resources to provide these countries will not be able, Georgieva warned.
Friday, March 27, was also published a joint statement Georgieva with the President of the International monetary and financial Committee Lesetja of Kganyago.
“We are in an unprecedented situation when a global pandemic in the health sector has become the economic and financial crisis. In sudden cessation of economic activity world output will decline in 2020”, — stated in the document.
The statement also indicated that the IMF stands ready to use its financial capacity to $1 trillion to support member States.
As reported ForumDaily:
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