Global Economy Has Entered Recession amid Virus Spread: IMF

Economy

Washington, March 27 (Jiji Press)--The global economy is in a state of recession due to the adverse effects of the spread of the new coronavirus, International Monetary Fund Managing Director Kristalina Georgieva said Friday.

"It is now clear that we have entered a recession as bad or worse than" the one at the time of the global financial crisis triggered by the 2008 collapse of U.S. investment bank Lehman Brothers, she said at a press conference.

The IMF expects the recession in 2020 to be "quite deep," Georgieva said.

She suggested that the global economy will experience a historic decline that will exceed the negative growth of 0.1 pct in 2009, which was the only contraction since the IMF started recording data in 1980.

On the other hand, Georgieva said, "We do project recovery in 2021."

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