IMF Chief Says World Has Entered The Recession

Sat Mar 28 2020 13:05:02 GMT+0530 (IST)

Talking about the deadly impact of the novel coronavirus on the global economy, the International Monetary Fund (IMF) chief Kristalina Georgieva said that the deadly virus has resulted in the downturn of the economy and huge funding is required to help the developing countries.

"It is clear that we have entered a recession that will be worse than in 2009 following the global financial crisis", she said

"Recovery is projected in 2021, but only if the virus can be contained and can prevent liquidity problems from becoming solvency issues", said Georgieva.

"We do know that their own reserves and domestic resources will not be sufficient. The fund is aiming to beef up its response to do more, do it better, do it faster than ever before," she added.

She went on to say that the estimated fund to meet the financial needs of the emerging markets will be $2.5 trillion. More than 80 nations that have low incomes have requested the International Monetary Fund for emergency aid.