The International Monetary Fund (IMF) Friday officially declared that the global economy has entered recession as a result of the spread of the new coronavirus, which has shut down economic activities across the world.
IMF’s Managing Director, Kristalina Georgieva, said they have reassessed the prospect for growth for 2020 and 2021.
“It is now clear that we have entered a recession – as bad as or worse than in 2009,” she said in a news briefing on Friday.
She suggested that the global economy would only recover if countries succeed in containing the virus.
According to Georgieva, a key concern about a long- lasting impact of the sudden stop of the world economy is the risk of a wave of bankruptcies and layoffs.
This, she said, not only can undermine the recovery but can erode the fabric of global societies.
The IMF and different economists across the world had already predicted that the COVID-19 driven economic recession was likely, and inevitable at the extreme.
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