The global economic downturn has been so severe that already half of the world has asked the International Monetary Fund for a bailout, the organization’s chief said Wednesday.
“This is an emergency like no other. It is not because of bad governors or mistakes,” Kristalina Georgieva told CNBC’s Sara Eisen on CNBC’s “Squawk Alley.” “For that reason, we are providing funding very quickly.”
“We are asking for one thing only: Please pay your doctors and nurses, make sure that your health [care] systems are functioning, and that vulnerable people and first responders are protected,” Georgieva said.
Georgieva comments came after the IMF said Tuesday it expects the global economy to contract by 3% this year, adding the world could see a 1930′s style recession. The fund had forecast a 3.3% economic expansion for 2020 in January.
Georgieva noted the global economy could expand by 5.8% in 2021 if the virus is contained and new cases start to recede. However, she added the total global economic output would be less than in 2019 even with such a jump. Economic output could also be worse if the virus takes a “double trip” around the world.
“It’s the first time in the history of the IMF that epidemiologists are as important as macro economists for our projections,” said Georgieva. “We are really hoping our scientists will not disappoint us.”
More than 2 million coronavirus cases have been confirmed globally, according to Johns Hopkins University. In the U.S. alone, over 600,000 cases have been confirmed.
Half of the world has asked the IMF for a bailout, chief says, CNBC, Apr 15
- Brent crude oil reversed from key support level 81.00 - Likely to test resistance…
- Silver broke multi-year resistance level 29.50 - Likely to reach resistance level 32.00 Silver…
The US dollar is not giving up without a fight, gaining for the second day…
Silver climbed above $29.8, rewriting the highs from January 2021, but once again faced selling…
Market picture The crypto market cooled off on Thursday afternoon, but on Friday morning, buyers…
- Amazon reversed from resistance level 190.00 - Likely to fall to support level 180.00…
This website uses cookies