Faced with the coronavirus pandemic that is spreading around the world, it is "clear" that the world economy has now entered into recession, announced the director general of the International Monetary Fund (IMF) Kristalina Georgieva, this Friday.
Stressing the exceptional nature of the current situation, Kristalina Georgieva indicated that she expected a "fairly deep" recession in 2020, probably worse than that of 2009 which followed the financial crisis. "We never had an economy" that stops suddenly, she added.
Economic recovery expected for 2021
"We therefore urge countries to intensify containment measures aggressively," she said at a virtual press conference. "We can shorten the duration of this crisis." The boss of the International Monetary Fund even expects a recovery in 2021 provided that governments take adequate and "coordinated" measures.
"There may be a significant rebound," she continued, "but if and only if we manage to contain the virus everywhere and prevent liquidity problems from becoming a solvency problem." She underlined in particular the immense need for financing for emerging countries, advancing the figure of 2.5 trillion dollars. "It is a low and conservative estimate," she warned.
Dampening the "shock", especially in the United States
It has also delivered a satisfaction to the United States which is on the verge of enacting a law to bring aid of more than 2,000 billion dollars to households and businesses in the country. "This is a very welcome step," she reacted, stressing the need to "absorb" the economic shock for the world's largest economy, forced as many countries to stop the activity of small businesses , confine populations and suspend the overwhelming majority of international air links. “It is very important for the American people. It is also important for the rest of the world, given the importance of the United States, ”she added.
Kristalina Georgieva also praised the fact that this massive aid package was "well targeted", since it will strengthen the capacity of the health system and "help workers and their families to be protected against a sudden loss of income, in order to that they can meet their daily needs. " Finally, it protects the most vulnerable businesses, especially small and medium-sized companies, which provide half of the jobs in the United States.
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- Covid 19
- Coronavirus
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- Recession
- IMF
- Economic crisis