IMF Managing Director Suggests Possible Downgrade of Global Economic Growth Forecast for This Year

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), is holding a press conference on March 4th (local time) at the IMF headquarters in Washington DC, USA. (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] The Managing Director of the International Monetary Fund (IMF) has suggested that the global economic growth forecast may be further downgraded.

According to major foreign media, Kristalina Georgieva, IMF Managing Director, attended an online event hosted by the European University Institute (EUI) on the 8th (local time) and stated that recent economic activity indicators in many countries are already showing figures lower than the pessimistic estimates.

Managing Director Georgieva explained, "Unless a medical solution is found soon, unfortunately, a more negative scenario may materialize in some countries," adding, "The uncertainty surrounding the behavior of COVID-19 is what darkens the horizon of economic forecasts."

Last month, the IMF projected the global economic growth rate for this year at -3%. At that time, the IMF anticipated a partial rebound in global economic growth in 2021 but warned that the situation could worsen significantly depending on the course of the COVID-19 pandemic.

The possibility of a renewed trade war between the world's first and second largest economies, the United States and China, is also cited as an additional negative factor. Managing Director Georgieva explained that if global trade retreats into protectionism, the outlook for global economic recovery could worsen during this critical period.

In fact, former U.S. President Donald Trump recently threatened to impose new high tariffs on China, holding it responsible for triggering the global spread of COVID-19.

Meanwhile, Managing Director Georgieva stated that the IMF has provided funds to 50 out of 103 countries that applied for emergency financing due to the COVID-19 crisis. Additionally, Gopinath, IMF Chief Economist, said at an event hosted by the U.S. think tank Council on Foreign Relations the day before that emerging and developing countries are facing difficult situations.

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