The coronavirus has plunged the world economy into a recessionIMF Managing Director Kristalina Georgieva said Friday, adding up to an immense pressure on the emerging markets who suffer from falling trade, reduced exports, and massive capital outflows. Read Prices of gasoline and diesel in Mexico today Friday March 27, 2020
At a press conference, Georgieva stressed that emerging market countries need at least $ 2.5 trillion in financial resources to overcome the pandemic.
The reserves and loans in local markets will be insufficient to meet these needs, which will require substantial financing from the IMF, other institutions and bilateral creditors, he added.
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In addition, the head of the IMF stressed the importance of strict containment measures to control the coronavirus pandemic, which she said would allow a strong economic recovery in 2021.
Georgieva told CNBC television that the global community is coordinating to respond to the crisis with forceful fiscal measures, and that these actions have been more extensive than those taken during the 2008 financial debacle.
However, he cautioned that it is not wise to quickly leave containment measures behind.
There is no way for us to have a solid recovery without strict containment, “he said.