IMF "Global Economic Growth This Year Below Last Year’s Level... $50 Billion Injection"

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), stated that the global economic growth rate this year is expected to fall below last year's level due to the spread of the novel coronavirus disease (COVID-19). The IMF has decided to provide financial support amounting to 50 billion dollars (approximately 60 trillion won) to prevent an economic slowdown caused by COVID-19.

On the 4th (local time), at a press conference held at the IMF headquarters in Washington DC with David Malpass, President of the World Bank (WB), Georgieva said, "Global growth in 2020 will fall below last year's level." Last year's economic growth rate was 2.9%. The IMF had announced a growth forecast of 3.2% for this year in mid-last month.

Georgieva explained that "the outbreak of COVID-19 is no longer a regional issue but a global problem requiring a worldwide response," and that COVID-19 poses a serious threat to people and the global economy. She initially expected the economic impact of COVID-19 to be limited to China but confirmed last week that the scenario had shifted to a more unfavorable one for the global economy, noting that COVID-19 has affected one-third of the IMF's 189 member countries.

Furthermore, she said it is currently difficult to predict the duration of the COVID-19 outbreak, adding, "The effectiveness of mitigation measures will play a key role in determining the economic impact."

On the same day, the IMF pledged a financial support program worth 50 billion dollars. This program is available without an official IMF program, and among this, 10 billion dollars will be provided as interest-free emergency loans (RCF) available to the poorest countries. Georgieva said, "What we are doing right now is reviewing countries that need financial support, promising to provide support to these countries, and responding immediately," adding, "We promise to respond as quickly as possible if requested."

Earlier, the WB also announced it would provide 12 billion dollars to help countries respond to the COVID-19 threat. President Malpass said, "Short-term financing is important in times of crisis," and "The speed and scale of the response are very important to the effectiveness of support."

This content was produced with the assistance of AI translation services.