COVID-19: IMF MD predicts deep recession in 2020; recovery expected in 2021

COVID-19: IMF MD predicts deep recession in 2020; recovery expected in 2021

- IMF's Managing Director, Kristalina Georgieva, has predicted a deep recession in the year 2020

- According to her, world economies may experience a partial and uneven recovery beginning from 2021

- She added that the global economy could nonetheless use the crisis as an opportunity for growth

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The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has expressed fears about the impact of the coronavirus on world economies.

According to her, there is a likelihood of a deep recession in 2020, which would be followed by a partial and uneven recovery the following year.

The comments came during a meeting with the Group of 20 (G20) finance ministers and central bank governors that was held on Monday, July 20, 2020.

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According to her, it is important to develop more policy actions as well as international cooperation as the world enters the next phase of the crisis.

Per a report by Ghana Web, she added that there is a need to support countries that are dealing with the crisis in order to forestall long-term damage to the global economy.

COVID-19: IMF MD predicts deep recession in 2020; recovery expected in 2021
Kristalina Georgieva Source:
Source: UGC

Georgieva went on to say the global economy should, nonetheless, use the crisis as an opportunity to create a better future for all.

This, she explained, could be achieved by maximizing the potential of the digital economy, promoting green investment to combat climate change in a job-rich manner, and investing in human capital to build a more inclusive economy.

Georgieva gave the assurance that the IMF would explore additional tools that could further help in this crisis like no other.

In other news, African countries have been cautioned against the misuse of funds borrowed from the international community.

The African Development Bank (AfDB) noted that several African countries are likely to be plunged into distress if corrective measures are not adopted with regard to the use of funds.

It stated that countries that access such funds need to channel them into developmental projects that would yield returns.

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Source: Yen

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