IMF chief: We have entered recession

Washington: The Covid-19 pandemic has driven the global economy into a downturn that will require massive funding to help developing nations, IMF chief Kristalina Georgieva said on Friday. “It is clear that we have entered recession” that will be worse than in 2009 following the global financial crisis, she said. Over 80 countries already have sought emergency aid from the International Monetary Fund.

“It is clear that we have entered a recession” that will be worse than in 2009 following the global financial crisis, she said in an online press briefing.

With the worldwide economic “sudden stop,” Georgieva said the fund’s estimate “for the overall financial needs of emerging markets is $2.5 trillion.” But she warned that estimate “is on the lower end.” 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. — AFP