Recently, the head of the International Monetary Fund, Kristalina Georgieva, stated that the global economy is in an economic recession due to Covid-19. Within this statement, she notes that “containing the virus and having an effective, coordinated response to the crisis” will positively impact the depth and the duration of this recession. Without these measures, the article notes that it will be difficult for the economy to recover in a short period of time. The article also notes that the IMF and Georgieva have pursued extraordinary measures to help combat the current economic decline and stagnation. Specifically, the IMF has stated that it is willing to use its $1 trillion dollar lending capacity to help states that are having difficulties combating the virus and the economic recession.
2 comments:
This is an interesting take from the head of the IMF. To me, 2021 does not seem like a bad forecast for recovery as long as governments are smart about maintaining containment measures and limiting spread. It will be interesting to see whether the response to the pandemic will be sufficient that the economy rebounds so quickly.
Many deny that we are already in a recession, but next year will be a recovery year. We have yet to experience the worst. The IMF is doing a good job of not hiding any information and hopefully we prepare for the worst.
Post a Comment