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    World economy bound to suffer ‘severe recession’: IMF

    pg09-World-economyThe world economy, already “sluggish” before the coronavirus outbreak, is now bound to suffer a “severe recession” in 2020, IMF chief Kristalina Georgieva has warned and said the current crisis posed “daunting challenges” for policymakers in many emerging markets and developing economies. Addressing the Development Committee Meeting during the annual Spring Meeting of the International Monetary Fund (IMF) and the World Bank, the IMF Managing Director said a large global contraction in in the first half of this year was inevitable.

    She said the coronavirus pandemic hit the world economy when it was already in a fragile state as it was weighed down by trade disputes, policy uncertainty and geopolitical tensions.

    “The global coronavirus outbreak is a crisis that is like no other and poses daunting challenges for policymakers in many emerging market and developing economies (EMDEs), especially where the pandemic encounters weak public health systems, capacity constraints, and limited policy space to mitigate the outbreak’s repercussions,” Georgieva said. She said that the world economy was in a “sluggish” recovery before the coronavirus outbreak, warning that it is now bound to suffer a “severe recession” in 2020.

    She said the medium termed projections were clouded by uncertainities. “Medium-term projections are clouded by uncertainty regarding the pandemic’s magnitude and speed of propagation, as well as the longer-term impact of measures to contain the outbreak, such as travel bans and social distancing,” she said.

    Courtesy – Daily News

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