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.”
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