The International Monetary Fund (IMF) says the global economic recession has begun. The economic recession could be dire since 2009. IMF chief Kristalina Georgieva said this at a news conference online Friday.
Kristalina Georgieva said the global economy was “abruptly shut” due to the coronavirus epidemic. Developing countries need at least $2.5 trillion dollars to overcome the coronavirus crisis. She said the direction the economy is moving. without the huge financial support, the developing countries will be a complete economic disaster.
Developing countries have lost $83 billion in capital over the past few weeks due to coronavirus infection. It will not be possible for the governments of those countries to lose capital. Many of these countries again have a huge debt burden. 80 countries, most of them low-income, have appealed to the IMF for emergency assistance.
.@KGeorgieva: We have seen an extraordinary spike in requests for IMF emergency financing – some 80 countries. We also see a range of problems building up in emerging market economies. https://t.co/RbPyl9UTOu #COVID19 #coronavirus pic.twitter.com/8NgqBNnsN7
— IMF (@IMFNews) March 29, 2020
The IMF chief also said that this economic recession is possible to recover in 2021 if the virus can be controlled worldwide. However, there are resolutions according to the volume. If we can control the virus everywhere, we can prevent the liquidity problem from being paid. “