COVID-19: IMF says global economy in recession

International Monetary Fund chief Kristalina Georgieva said that the global economy is now in a recession due to coronavirus.

"It is now clear that we have entered a recession. We project a rebound in 2021, but only if we contain the virus and prevent liquidity problems from becoming a solvency issue," Georgieva said,

Over 80 countries, mostly of low incomes, have already have requested emergency aid from the International Monetary Fund, she said.

"We do know that their own reserves and domestic resources will not be sufficient," Georgieva said, adding that the fund is aiming to beef up its response "to do more, do it better, do it faster than ever before."

More countries are imposing lockdown measures to contain the rapidly spreading virus, which has infected over 337,500 people across the world.

Earlier this month, Georgieva had warned that 2020 world growth would be below the 2.9 percent rate seen in 2019 but stopped short of predicting a recession. Trade wars pushed global growth last year to the lowest rate since a 0.7 percent contraction in 2009.

On Monday, Georgieva said the recovery was expected in 2021, but to reach it countries would need to prioritize containment and strengthen health systems.

"The economic impact is and will be severe, but the faster the virus stops, the quicker and stronger the recovery will be," she said.