IMF chief Kristalina Georgieva quoted on Friday during a press conference that the world might be heading towards a recession that will be surpassing the likes of the 2009 recession thanks to the ongoing COVID-19 pandemic. “We have stated that the world is now in recession and that the length and depth of this recession depend on two things: Containing the virus and having an effective, coordinated response to the crisis,” she quotes.
“We should not go with small measures now when we know that it is a gigantic crisis,” she further quotes. “We’ve never seen the world economy standing still. Now we do. How we go about revitalizing it is another important topic.” However, she also feels with a certain ambiguity that the world coordinated efforts by the world leaders will push the virus out of existence.
The IMF has played a severe role in upholding the affected countries in an economic gridlock. On March 16th the international body said that it was ready to deploy its entire lending capacity of $1 trillion at a moment’s notice. Georgieva wrote that at a time of disparity such economic support could be used to aid developing countries to counteract the effects of the crippling economies.
The IMF’s Catastrophe Containment and Relief Trust uphold its goal of helping the poorest countries with immediate debt relief, which can further help up free resources for health spending, containment of the virus and future mitigation reliefs. Her comments come after the violent week that Wall Street faced as the S&P went down nearly 3% during midday trading. However, the S&P and the Dow Industrials were up by another 10% at the end of this week as the U.S economic relief eased burdens on the market by implementing relief policies and issuing zero-interest loans.
The IMF statements held further water as Donald Trump passed a collective bill of $2 trillion cash-infusion that will further strengthen the American people and help industries that have taken an economic hit due to the downfall of the virus.