International Monetary Fund ((IMF) said on Friday that the coronavirus has already plunged the global economy into recession, IMF Managing Director.
According to Reuters, IMF Managing Director Kristalina Georgieva who spoke at a news conference in Washington said that emerging market countries need at least $2.5 trillion in financial resources to get through the pandemic.
She added that the pandemic has put immense pressure on emerging markets suffering from lost commerce, reduced exports, and massive capital outflows.
Internal reserves and borrowing in local markets will be insufficient to cover these needs, so substantial funding from the IMF, other institutions and bilateral creditors will be.
“It is clear” that the world has “entered a recession as bad or worse” than the global financial crisis in 2009.
The coronavirus pandemic will cause global economic output to contract in 2020.
“There may be a sizable rebound, but only if we succeed at containing the virus everywhere,” said the IMF chief.