Washington: More than 100 countries have turned to the International Monetary Fund (IMF) for financial support to cope with the economic fallout from the COVID-19 pandemic, the institution’s managing Director has said.
“We meet during exceptional times. And exceptional times call for exceptional action,” Kristalina Georgieva said following a virtual edition of the Fund’s annual spring meeting on Tursday.
“More than ever, we must work together to respond to this unprecedented crisis and prepare for recovery,” she said.
Of the 102 nations that have approached the IMF for help, 15 – including El Salvador, Ecuador, Madagascar, Rwanda and Togo – have already seen their applications approved, while Fund officials are expected to decide on dozens more applications by the end of April, reports Efe news.
The Fund’s latest economic forecast showed a global contraction of 3 per cent in 2020, compared with a 0.1 per cent decline in 2009 as a result of the financial meltdown. And the IMF’s predictions for individual countries are even more alarming.
The US is set to see its GDP shrink 5.9 per cent, while Euro-zone GDP will shrink 7.5 per cent and Japan’s economy will retreat 5.2 per cent.
While the IMF foresees a “partial recovery” in 2021, the just-concluded virtual assembly was dominated by discussions about the shape of the economic trajectory under the influence of COVID-19. (IANS)
