Global Economy Now In Recession – IMF

The International Monetary Fund(IMF) has said that the global economy has slipped into recession.

According to IMF Managing Director, Kristalina Georgiev, the recession could be as bad or worse than the one experienced in 2009.

A global recession is defined as a recession that affects many countries around the world, launching them into a period of declining economic output.

Georgie said though the lending agency forecasted a recovery in 2021, it would only occur if nations succeed in containing the coronavirus and limiting its economic damage.

“A key concern about a long-lasting impact of the sudden stop of the world economy is the risk of a wave of bankruptcies and layoffs that not only can undermine the recovery but erode the fabric of our societies,” she said.

Recall that the IMF had said that lower income countries were being hit hard by the spreading coronavirus, with 81 nations now seeking support from the agency’s emergency financing program being used to provide aid.

Nigeria’s finance minister, Zainab Ahmed, had also projected that the country may slip into recession if the impact of the virus was not contained in six months.