The global economy is stuck in an unprecedented kind of recession that necessitates international cooperation, the International Monetary Fund chief, Kristalina Georgieva, told CNBC on Friday.
Despite forecasts of a recession arriving in the second quarter, Georgieva said that the world economy is already mired in deep contraction and that working across borders is the only way to lift the pandemic’s downward pressure.
“We have stated that the world is now in recession and that the length and depth of this recession depends on two things: Containing the virus, and having an effective, coordinated response to the crisis,” she said, adding, “I see a much clearer understanding that if we don’t beat it everywhere, we won’t be able to get out of it.”
What has the IMF done for the pandemic? The IMF has joined several central banks and governments in issuing swift aid to counteract the coronavirus pandemic’s economic fallout. The international organization said last week that it “stands ready” to use its $1 trillion credit capacity to aid countries strapped for cash and that relief for emerging countries is of particular importance.