IMF's Georgieva Says Global Growth To Be Deep Below 2019 Level On COVID-19
March 04 2020 - 5:10AM
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Global growth this year would be much lower than 2019 level as
the coronavirus, or COVID-19, spreads to several countries hurting
economic activity, International Monetary Fund Managing Director
Kristalina Georgieva said Wednesday. "Under any scenario, global
growth in 2020 will fall below last year's level," Georgieva said
during a press briefing, where she was joined by World Bank Group
President David Malpass.
"How far it will fall, and for how long, will depend on the
coronavirus epidemic, but also on the quality, timeliness, and
effectiveness of policy actions," she added.
Georgieva said there has been a shift to a more adverse scenario
for the global economy last week. The new projections will be
presented in the latest update to the World Economic Outlook over
the coming weeks, she said. In the January update to the World
Economic Outlook, the IMF had projected global growth to improve to
3.3 percent this year from 2.9 percent last year.
The economic shock caused by the COVID-19 outbreak is "unusual"
as it affects both supply and demand, Georgieva said. The IMF could
quickly disburse $50 billion through its emergency financing
facilities to low income and emerging markets countries that do not
require full-fledged rescue measures, she added.
Late Tuesday, the World Bank announced an aid of up to $12
billion as immediate support for countries to respond to the virus
outbreak. The package will include emergency financing, policy
advice, and technical assistance, Malpass reiterated.
Earlier on Wednesday, the International Monetary and Financial
Committee said after a conference call that the 189 member
countries of the IMF are determined to provide the necessary
support to mitigate the impact, especially on the most vulnerable
people and countries.
The parent organization of IMF called upon the lender to use all
its available financing instruments to help member countries in
need. "We are confident that, working together, we will overcome
the challenge facing us and restore growth and prosperity for all,"
the IMFC said in a statement.
In other developments, the IMF and the World Bank decided on
Tuesday that the 2020 Spring Meetings, scheduled for April, will be
held virtually to ensure the health and safety of participants and
staff due to the fears around the COVID-19.
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