IMF: economic crisis will last until 2021

Representatives of the International Monetary Fund said that this year the coronavirus pandemic couldprovoke a global crisis. Nevertheless, according to them, as early as next year, the economy will begin to recover.

Monday after emergency phoneG-20 financiers' conference, IMF managing director Kristalina Georgieva said central banks are jointly developing a program to mitigate monetary policy and reduce risks in the coming period of the global recession.

In a statement, the head of the IMF noted:

These efforts are aimed not only at the interests of each country, but also at the global economy as a whole 

To overcome the crisis, the fund is ready to use all its credit facilities of $ 1 trillion. Almost 80 countries have already turned to the IMF for help.

Georgieva believes that COVID-19 will seriously affectto the world economy, but the sooner it is possible to stop the spread of the virus, the faster and more powerful will be the restoration in 2021. To do this, “it is important to set containment priorities, and strengthen health systems everywhere.”

Major central banks are already providing assistancedeveloping countries, which find themselves in a more difficult situation and seriously affected by the largest wave of capital outflows. Georgieva said that since the start of the coronavirus crisis, investors have withdrawn more than $83 billion from emerging markets. 

Let us recall that recently the President of the FederalThe US reserve confirmed the state of recession, which may worsen in the future. Under these circumstances, Congress instructed the Fed to print new money – as much as it takes to avoid reaching the level of the 2008 crisis.