March 24, 2020

Andrew Campbell 

The growth of the world economy in 2020 would be negative due to COVID-19, according to Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF). However, the IMF expects the global economy to rebound in 2021 if the virus could be stopped as soon as possible, with all countries enhancing their health systems. 

After the conference call with G20 Finance Ministers and Central Bankers on March 23rd, IMF calls on all of the nations working together to lessen the economic damage. It also said it’s available to provide US$1 trillion lending capacity. On the other side, the Federal Reserve launches a series of plans to assist businesses, employers, and consumers. 

Based on the IMF, the financiers have removed about US$83 billion from emerging markets due to the COVID-19. As a consequence, the emerging markets have to overcome the challenges of outward capital flows. With the request form nearly 80 countries, the IMF would hasten the emergency finance. It is looking forward to more financial institutions joining to help those poor countries conquer the threats caused by coronavirus.

Photo:Webshot.