Over Half Of The World Has Asked The IMF For Emergency Funding

TOPLINEThe director of the International Monetary Fund, Kristalina Georgieva, said in an interview on Wednesday that the global economic downturn caused by coronavirus has been so acute that over half of the world’s countries have already asked for emergency funding.

KEY FACTS

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In a recent interview with Reuters, the organization’s chief economist, Gita Gopinath, said that 100 of the organization’s 189 members—half of which are low-income and developing countries—have already contacted the IMF for emergency funding. She predicted that the pandemic would be devastating for the economies of poor countries, many of which have fewer resources to deal with the fallout from the pandemic, not to mention high debt levels and weak health-care infrastructures.

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“We view our $1 trillion capacity at the IMF as being quite substantial for dealing with this crisis,” Gopinath said on Monday. She added that further resources may be needed, however, as the crisis hits developing countries with a vengeance.

What to watch for

The IMF forecast that the global economy could recover by 2021, growing by 5.8% if the coronavirus is effectively contained and new cases start to level off. Total economic output for next year is still expected to be less than in 2019, even with a resurgence in growth.

Further reading

IMF: Global Growth Will Drop 3% Amid Worst Outlook ‘Since Great Depression’ (Forbes)

IMF Warns Coronavirus Will Hurt Global Economy ‘Way Worse’ Than 2008 Financial Crisis (Forbes)

IMF Chief Economist Says 100 Countries Seek Pandemic Aid; More Resources May Be Needed (Reuters)

Just How Bad Is It? Here’s The Economic Damage The Coronavirus Will Cause, According To Major Banks (Forbes)

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