COVID-19:  Global economy in recession-IMF

The International Monetary Fund (IMF) has said that the global economy has entered recession over the ravaging impact of the COVID-19 on different countries.

The Managing Director, IMF, Kristalina Georgieva, said this while making an opening remark during a conference call of the International Monetary Fund and Financial Committee.

She declared that no fewer than 80 countries had approached the Fund for help.

“We have reassessed the prospect for growth for 2020 and 2021. It is now clear that we have entered a recession – as bad as or worse than in 2009.

“We do project recovery in 2021 – in fact, there may be a sizeable rebound, but only if we succeed with containing the virus – everywhere – and prevent liquidity problems from becoming a solvency issue.

“A key concern about a long-lasting impact of the sudden stop of the world economy is the risk of a wave of bankruptcies and layoffs that not only can undermine the recovery but can erode the fabric of our societies.”

She added, “We have seen an extraordinary spike in requests for the IMF emergency financing – some 80 countries have placed requests and more are likely to come. Normally, we never have more than a handful of requests at the same time.”