The head of the International Monetary Fund says it is clear that the global economy has now entered an "unprecedented recession" due to the spread of coronavirus (COVID-19).

The global economy is facing never-before-seen threats that necessitate cross-border cooperation, IMF Chief, Kristalina Georgieva, told CNBC on Friday.

"The world is now in recession," she said, adding that the downturn's length and depth depend on "containing the virus, and having an effective, coordinated response to the crisis."

Countries should use everything in their policy arsenal to combat the outbreak, Georgieva said, as "small measures" can't solve "a gigantic crisis."

"The IMF said last week that it "stands ready" to employ its $1 trillion lending pool for cash-strapped nations, with a particular focus on developing countries," Business Insider reports.

The publication reads that the IMF managing director praised nations that instituted strict containment measures and banned international travel.

"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," the article further reads.

"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."

Author: Ben Winck

Source: Business Insider

Photo Source: AP News

28 March 2020 12:56