International Monetary Fund (IMF) Chief Kristalina Georgieva has said that thanks to the coronavirus, the world is entering a recession that will be worse than that of 2009. While addressing an online press briefing, Georgieva said that with the 'sudden stop' of the global economy, revival will take a massive fund of $2.5 trillion.
"It is clear that we have entered a recession that will be worse than 2009 following the global financial crisis. With the economic 'sudden stop' the fund estimated for financial needs of the emerging markets is $2.5 trillion," Georgieva said also warning that this figure is 'on the lower end.'
Georgieva also said that over 80 countries, mostly of low incomes, have already requested emergency aid from the IMF. To this regard, she added, "We do know that their own reserves and domestic resources will not be sufficient."
The IMF chief spoke to the reporters after a virtual meeting with the IMF lender's steering committee based in Washington.
Georgieva also welcomed the $2.2 trillion economic package approved by the US Senate. "It is absolutely necessary to cushion the world's largest economy against an abrupt drop the economic activities," she signed off by saying.
Coronavirus has infected over half a million people across the globe killing over 25,000. Due to the life coming to a standstill, the financial burden has been massive on nations as well as organisations.
With major financial hubs across the globe including New York, London, Paris, Milan, Melbourne and Mumbai facing large-scale travel restriction, the stock markets across the globe have nosedived. Several of the indices around the globe have seen their worst ever weeks in the last 15 days.