The World Is In A Recession, Says IMF Chief Georgieva

The coronavirus pandemic has already pushed the global economy into a recession, said International Monetary Fund chief Kristalina Georgieva on Friday.

She however said that the IMF was happy to finally see that the global leaders were at last realizing the a joint and coordinated effort was needed by them to help in preventing the global economy from going into a deeper recession as well as to prevent further spread of the coronavirus pandemic.

“We have stated that the world is now in recession and that the length and depth of this recession depends on two things: Containing the virus and having an effective, coordinated response to the crisis,” she saif during a television interview to CNBC.

“I’m very encouraged by what I see now. I see much clearer understanding [among global leaders] that if we don’t beat it everywhere we won’t be able to get out of it,” she added.

“We should not go … with small measures now when we know that it is a gigantic crisis,” she said minutes later. “We’ve never seen the world economy standing still. Now we [do]. How we go about revitalizing it is another important topic.”

In recent weeks, extraordinary measures have been taken by the IMF to help to reduce the economic impact of Covid-19 – the disease that is caused by the novel coronavirus, arresting the spread of the pandemic and stem the bleeding of some of the economies that have been hit hard by it across the globe.

The IMF had announced last week that it “stands ready” to allow the use of its $1 trillion lending capacity particularly directed towards the emerging economies of the world that are struggling to cope with the economic fallout as well as the humanitarian impact of the novel coronavirus pandemic.

That financial support could be used to aid its members, especially emerging and developing countries, Georgieva wrote at the time. She wrote: the IMF’s Catastrophe Containment and Relief Trust “can help the poorest countries with immediate debt relief, which will free up vital resources for health spending, containment, and mitigation.”

(Adapted from CNBC.com)

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