Coronavirus will bring global recession worse than 2009: IMF
IMF Chief Kristalina Georgieva said that the global economy is facing a huge crisis due to the outbreak of Coronavirus pandemic.
IMF on Global Slowdown due to COVID-19: Many countries of the world have been declared lockdown due to Coronavirus or COVID-19 outbreak. Indian Prime Minister Narendra Modi has also announced the complete lockdown of the country for next 21 days on March 24, 2020. Now, the International Monetary Fund (IMF) has said that the global economy is slowing down rapidly and it can be worst than 2009’s recession.
IMF Chief Kristalina Georgieva said that the global economy is facing a huge crisis due to the outbreak of Coronavirus pandemic. This loss can be so big that there is a possibility of a big economic slowdown even than the year 2009. The IMF has said that countries need to take unprecedented steps to deal with it.
IMF on Global Slowdown
According to the IMF, the world economy has fallen by 1.5% due to the current shutdown. Investors have removed their investments from emerging markets. Also, the outlook for global growth for 2020 is negative. The International Monetary Fund will provide USD 1 trillion to fight the Coronavirus. More than 80 countries have requested emergency funds from the International Monetary Fund.
Challange for emerging economies
Global investors have withdrawn investment of nearly USD 83 billion from India and many emerging markets due to the Coronavirus. Coronavirus has left a worse impact on global economies. IMF has also said that COVID-19 pandemic will have a worse effect on developing and smaller countries than developed countries. IMF also said that developed and rich countries should help poor and developing countries.
Next Year’s expectation
The IMF is particularly concerned about low-income countries and is working closely with the World Bank to provide loans to them. IMF is quite sure that economic slowdown will affect the entire world. However, the situation may improve in the year 2021. IMF said that it is more important to control the spreading infection of the Coronavirus.