International Monetary Fund(IMF) Managing Director Kristalina Georgieva has declared a global recession driven by the COVID-19 pandemic that could be worse than the 2008-09 global financial crisis. But recovery is also projected in 2021, if the nations succeed in curbing the coronavirus as well as limiting the economic damage.This announcement regarding the recession has been made after a telephonic conference of IMF with finance officials from the 24 nations that make up the IMF’s policy-setting panel-International Monetary and Financial Committee.
- The estimated overall financial needs of emerging markets is 2.5 trillion dollars as 81 emergency financing requests, including 50 from lower-income countries, have been received by IMF.
- Kyrgyzstan would receive the first IMF support package of $120.9 million to deal with adverse effects of the virus.
Steps to be Taken by IMF to support nations:
-IMF is ready to make $1 trillion of its lending resources available to countries being hit by the virus.
-To meet the increased demand IMF would seek to double the emergency financing program and simplify the procedures for countries to obtain IMF support.
What is Recession?
The term recession is a macroeconomics term and refers to a period of decline in economic activity lasting more than a few months. It has an unfavourable impact on real GDP, real income, employment, industrial production, and wholesale-retail sales.
Members– 189 including India
Headquarters– Washington, D.C., United States