We Have Entered Recession That Will Be Worse Than 2009
It is clear that we have entered a recession” that will be worse than in 2009 following the global financial crisis, says IMF Chief.
The coronavirus pandemic has driven the global economy into a downturn that will require massive funding to help developing nations.
With the worldwide economic “sudden stop,” Georgieva said the fund’s estimate “for the overall financial needs of emerging markets is $2.5 trillion.”
Governments in emerging markets, which have suffered an exodus of capital of more than $83 billion in recent weeks, can cover much of that, but “clearly the domestic resources are insufficient” and many already have high debt loads.
Over 80 countries, mostly of low incomes, have already have requested emergency aid from the International Monetary Fund.
The fund is aiming to beef up its response “to do more, do it better, do it faster than ever before.”
The IMF Chief officially requested a increase in the fund’s fast-deploying emergency facilities from their current level of around $50 billion.
She also welcomed the $2.2 trillion economic package approved by the US Senate, saying “it is absolutely necessary to cushion the world’s largest economy against an abrupt drop the economic activities.”