WASHINGTON • The continued spread of the coronavirus will push this year’s global growth below last year’s levels, International Monetary Fund managing director Kristalina Georgieva said yesterday, adding that the IMF will again revise its forecasts downward in the coming weeks.

The IMF in January had estimated last year’s global growth at 2.9 per cent and this year’s at 3.3 per cent. Last month, it said the outbreak could shave 0.1 percentage point from this year’s growth.

“Growth this year will fall below the level of last year,” Ms Georgieva told a news conference in Washington, but declined to say whether the virus crisis could push the world into a recession, according to Reuters.

“It is the duration of the outbreak that at this time is difficult to predict,” she said, adding that the effectiveness of mitigation measures would play a key role in determining the economic impact.

Ms Georgieva stressed that fiscal and monetary stimulus measures should not shift resources away from working capital, CGTN reported.

The IMF’s International Monetary and Financial Committee yesterday held a teleconference call chaired by South African Reserve Bank governor Lesetja Kganyago and Ms Georgieva, and issued a statement on the IMF’s website.

“The IMF’s 189 member countries stand united to address the global challenges related to the coronavirus (Covid-19) epidemic and we extend our sympathies to all those affected.

“The economic and financial impact has also been felt globally, creating uncertainty and damaging near-term prospects,” the statement said.

“We are determined to provide the necessary support to mitigate the impact, especially on the most vulnerable people and countries. We have called upon the IMF to use all its available financing instruments to help member countries in need,” it added.

TAKING ALL POSSIBLE MEASURES TO HELP

We are determined to provide the necessary support to mitigate the impact, especially on the most vulnerable people and countries. We have called upon the IMF to use all its available financing instruments to help member countries in need.

AN IMF STATEMENT

“We are confident that, working together, we will overcome the challenge facing us and restore growth and prosperity for all.”

Ms Georgieva and World Bank Group president David Malpass had on Monday declared that the global bodies were ready to help member countries, CGTN reported.

Have a question on the coronavirus outbreak? E-mail us at [email protected]

To get alerts and updates, follow us on Telegram.

Source: Read Full Article