IMF awaits worldwide recession

US, WASHINGTON (ORDO NEWS) — Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva said that in 2020, the world is waiting for an economic recession provoked by the coronavirus epidemic.

At the same time, it may turn out to be much more serious than the one observed during the global financial crisis of 2008-2009, but business activity and production should be restored by 2021, reports Reuters.

Georgieva approved fiscal, monetary and social measures already taken by politicians and central banks of many countries to reduce the negative effects of the virus epidemic, strengthen health systems and protect affected companies and workers.

“The human costs of the coronavirus epidemic are immeasurable, and all countries must work together to protect people and limit economic damage,” she said.

To date, Covid-19 has infected approximately 337.5 thousand people worldwide and killed more than 14.6 thousand people. To achieve a recovery in growth, according to Georgieva, it will be necessary first of all to maintain and strengthen health systems in all countries, and the sooner the virus is stopped, the faster and stronger recovery will be.

The IMF is concerned about the situation in emerging economies, and especially in low-income countries that are in a state of debt crisis. In contrast, economically developed states are better prepared to overcome the crisis.

Since the start of the epidemic, investors have taken out $ 83 billion from emerging economies, which is the largest capital outflow in history, which is why the IMF is urging its members to replenish the Disaster Management Fund and the Poverty Trust Trust Fund.

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