Washington: The International Monetary Fund (IMF) chief said on Friday that it has now become very clear that the global economy has now reached a period of recession, which may be worse or worse than the 2009 recession. IMF managing director Kristalina Georgieva said the 189-nation lending agency predicted a recovery by 2021. But the agency has also said that this will be done only when all countries will be able to deal with coronovirus and will be able to limit the economic losses.
He said that one of the major concerns about the impact of the global economy going on for a long time is the crisis of insolvency and increasing layoffs in companies. This makes recovery difficult and can spoil the social fabric. After a telephone conversation with the IMF's policy-making panel and finance officials from 24 countries, he spoke to the press at the conference.
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He said that the IMF is now updating its economic outlook and it will be released in a few weeks, which will take the agency more time to assess the economic effects of the virus. Asked if the US was now in recession, he said that the Federal Reserve Chairman, Jerome Powell, said on Thursday that the United States was moving towards a major recession. He said that not only the US but many other advanced economies and many developing countries have already entered a recession.
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