Following a recent meeting of the G20 finance ministers and central bank governors on the coronavirus pandemic, International Monetary Fund (IMF) managing director Kristalina Georgieva says negative global growth in 2020 will be driven by a recession that is as bad as – or possibly worse than – the 2007-2008 financial crisis.
Despite a bleak outlook for 2020, Georgieva predicts a recovery in 2021, provided nations prioritize containment and strengthening their health systems to prevent further spread of the virus.
“All countries need to work together to protect people and limit the economic damage. This is a moment for solidarity…
“The economic impact is and will be severe, but the faster the virus stops, the quicker and stronger the recovery will be.”
Georgieva says the IMF is now working closely with other international financial institutions as nearly 80 countries have called for help.
The IMF is also asking for fund contributions from its members to replenish the Catastrophe Containment and Relief Trust, to lessen the economic impact of the health crisis on the most vulnerable countries.
Georgieva says the IMF is also ready to deploy its $1 trillion lending capacity, and is considering allocating its special monetary reserve currency to supplement aid for low- and middle-income countries.
“These are extraordinary circumstances. Many countries are already taking unprecedented measures. We at the IMF, working with all our member countries, will do the same.”