World Economy In Recession: IMF Chief

Publish On: 28 Mar, 2020 09:56 AM | Updated   |   Shivalik  

The deadly coronavirus has taken the world economy to a recession which can be as bad or worse than the financial meltdown of 2009, IMF chief Kristalina Georgieva said Friday.

"It is clear that we have entered a recession, as bad or worse than 2009," she said in an online press briefing.

Georgieva said that a key concern of the "sudden stop" of the global economy may be a wave of bankruptcies and layoffs which will not only undermine the recovery but can erode the material of our society.

For the emerging markets, she said the fund's estimates financial need of about $2.5 trillion to return of the present crisis. But she warned that the estimate is on the lower side. Over 80 countries have already got requested emergency aid from the International fund .

The IMF chief said that though in recession, recovery is extremely possible in 2021 if the virus is contained across the world.

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