IMF director says global economy facing 'deep recession'

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Kenneth Fox
The Managing Director of the International Monetary Fund (IMF) says the global economy is facing a deep recession in 2020.

Ms. Kristalina Georgieva issued a statement following the conclusion of a virtual meeting of the Group of 20 (G20) Finance Ministers and Central Bank Governors, chaired by Saudi Arabia.

She says Covid-19 will continue to have a major impact globally.

"Due to the continuing impact of the COVID-19 pandemic, the global economy faces a deep recession this year, with partial and uneven recovery expected in 2021.

"While there remains great uncertainty on the outlook, the unprecedented actions taken by the G20 countries and others have helped to avert a much worse outcome.

"The G20 Action Plan aims support countries in fighting the crisis and to prevent long-lasting scarring of the global economy—particularly waves of bankruptcies, risks to financial stability, high unemployment, and increasing inequality—I emphasized the following."

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Vulnerable economies

She also mentioned the need to look after those countries who were already struggling economically before the pandemic hit.

"We need to unite to help the poorest and most vulnerable economies, especially those struggling with high debt or dependent on hard-hit sectors.

"There is a need to fill gaps in the international debt architecture and think about more comprehensive debt relief for many countries. We stand ready to support these efforts."

“I also emphasized that we can use the crisis as an opportunity to build a better future for all people."

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