Jakarta: International Monetary Fund (IMF) managing director Kristalina Georgieva has said that the outlook for global growth for 2020 is negative due to the economic impact of the coronavirus pandemic.
The statement was made following a conference call of G20 Finance Ministers and Central Bank Governors on Monday, March 23, 2020.
"First, the outlook for global growth: for 2020 it is negative—a recession at least as bad as during the global financial crisis or worse. But we expect recovery in 2021," she said.
"To get there, it is paramount to prioritize containment and strengthen health systems—everywhere. The economic impact is and will be severe, but the faster the virus stops, the quicker and stronger the recovery will be," she said.
According to her, advanced economies are generally in a better position to respond to the crisis, but many emerging markets and low-income countries face significant challenges.
Since the beginning of the crisis, investors have already removed US$83 billion from emerging markets, the largest capital outflow ever recorded.
"They are badly affected by outward capital flows, and domestic activity will be severely impacted as countries respond to the epidemic," she said.
"We are particularly concerned about low-income countries in debt distress—an issue on which we are working closely with the World Bank," she said.
To support its members, the IMF has taken a wide range of measures, including stepping up emergency finance, replenishing the Catastrophe Containment and Relief Trust, and working closely with other international financial institutions.
"The human costs of the Coronavirus pandemic are already immeasurable and all countries need to work together to protect people and limit the economic damage," she said.
"This is a moment for solidarity—which was a major theme of the meeting today of the G20 Finance Ministers and Central Bank Governors," she said.