IMF director Kristalina Georgieva issued this warning after a conference call from finance ministers and G20 central bank governors today. Georgieva says he made three points in the call:
1) First, the prospects for global growth: for 2020, it is negative - "a recession at least as bad as during the global financial crisis or worse".
The IMF expects a recovery in 2021 - but for that to happen, countries must prioritize containment and strengthen health systems - everywhere.
"The economic impact is and will be serious, but the faster the virus stops, the faster and stronger the recovery".
2) Emerging market economies are in a worse position to face the crisis
"They are seriously affected by external capital flows and domestic activity will be severely impacted as countries respond to the epidemic. Investors have already removed $ 83 billion from emerging markets since the start of the crisis, the largest outflow of capital on record. We are particularly concerned about low-income countries in debt difficulties - an issue on which we are working closely with the World Bank. ”
3) The IMF wants to help and has $ 1 trillion in loans available
"We will massively intensify emergency funding - almost 80 countries are asking for our help - and we are working closely with other international financial institutions to provide a strong coordinated response"
Source: Guardian // Image credits: Brendan Smialowski / AFP via Getty Images