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IMF: Coronavirus affects strong economic growth in 2020

The global spread of the new coronavirus banishes any hope of solid economic growth in 2020, said International Monetary Fund Director-General Kristalina Georgieva, adding that one-third of the 189 Member States of the Fund are currently affected

The IMF expects global economic growth to fall below 2.9% by 2019, and the revised forecasts will be released in the coming weeks, according to Digi24.

Thus, the new estimate is down more than 0.4 percentage points from the 3.3% increase the IMF had estimated in January as trade tensions between the US and China have shrunk.

In addition, The IMF provides $ 50 billion emergency financing, which includes low-interest or no-interest loans as could help poor countries with poor health systems to respond to the epidemic.

The World Bank has announced that it is providing $12 billion in immediate funds to help developing countries improve their health services.

In China, even if the spread of the virus has slowed, growth will be below the IMF’s latest forecast of 5.6% in 2020, Georgieva said. It considers that the global financial system is much more resilient than before the 2008-2009 financial crisis, but stressed that decision-makers must take coordinated action and take precautions if the epidemic worsens.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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