Today Kristalina Georgieva, Managing Director of the International Monetary Fund, gave an unhappy diagnosis to the Fund’s 189 member countries. Approximately one third of their number are sick and the COVID-19 contagion is spreading to all the other nations. This expanding virus will slow 2020 global growth to below 3.0% and future economic forecasts will have to be revised based on still unknown infection rates.
Georgieva stopped short of forecasting a global recession but did admit that “growth this year will fall below the level of last year.” Because the duration and human cost of the coronavirus infection is so uncertain the IMF has set aside $50 billion in interest free loans for low-income and emerging market countries.
“What we’re doing right now is reviewing country by country what are the financial needs, and engaging with these countries to make sure they are aware of this resource and we can immediately respond to them,” Georgieva said. “We’re in an early stage of engagement, but I can assure you that we will act very quickly as requests come.”
World wide demand for trade and tourism has been hardest hit as the virus spread outside of China to what is now more than 70 countries. The demand for oil and other commodities has dropped in line with this global slowdown and the long term effects are still unknown. Free money from the IMF in an attempt to mitigate the negative impact of coronavirus on the global economy is a predictable prescription from globalists.
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