Washington ,Apr 18:
A large global contraction in the first half of this year is inevitable, the International Monetary Fund has warned, asserting that the coronavirus pandemic has struck the world economy that was already in a fragile state as it was weighed down by trade disputes, policy uncertainty and geopolitical tensions.
IMF Managing Director Kristalina Georgieva said on Friday that the world economy was in a sluggish recovery before the coronavirus outbreak, warning that it is now bound to suffer a “severe recession” in 2020. “The world economy was in a sluggish recovery before the coronavirus outbreak and is now bound to suffer a severe recession in 2020,” Georgieva added.
Addressing the Development Committee Meeting during the annual Spring Meeting of the International Monetary Fund (IMF) and the World Bank, a severe economic impact in the first half of 2020 was inevitable and the pandemic encounters weak public health systems.
“The global coronavirus outbreak is a crisis that is like no other and poses daunting challenges for policymakers in many emerging market and developing economies (EMDEs), especially where the pandemic encounters weak public health systems, capacity constraints, and limited policy space to mitigate the outbreak’s repercussions,” Georgieva said. The IMF Managing Director said that the immediate priority is to minimise the pandemic’s human toll and economic disruption. Policymakers must use all instruments at their disposal to slow the pandemic’s spread and prevent overloading their health systemsthe idea of a tradeoff between saving lives and saving livelihoods is a false dilemma,” she added.