The International Monetary Fund (IMF) has warned that a worldwide coronavirus recession in wake of the ongoing coronavirus pandemic could be even worse than 2009.
The IMF has further warned that many emerging markets could be particularly severely hit by the economic recession, and advocated “extraordinary fiscal actions” and measures to ease monetary policy.
However, IMF expects recovery in 2021.
In a statement IMF further said that the outlook for global growth: for 2020 it is negative – a recession at least as bad as during the global financial crisis or worse, IMF Managing Director Kristalina Georgieva said, following a conference call of G20 finance ministers and central bank governors.”
“The economic impact is and will be severe, but the faster the virus stops, the quicker and stronger the recovery will be,” the IMF Managing Director Kristalina Georgieva said in a statement
For its part, the IMF said it plans to “massively step up emergency finance” and stands “ready to deploy all our $1 trillion lending capacity” with particular focus on the poorest countries. Georgieva noted that almost 80 states had already requested IMF assistance.
The 2008 global financial crisis and the recession that followed, spreading into 2009, has so far been considered as the most severe worldwide economic disaster in the modern history. Some economists labelled it the most serious crisis since the Great Depression of the 1930s.