The fund manager Kristalina Georgieva said, on an occasion organized by the European University Institute via the Internet, that the latest economic data for many countries comes without the Fund's already pessimistic expectations of a contraction of three percent In 2020.
Georgieva said that without medical solutions currently, more negative scenarios may be achieved for some economies, adding that it is unknown the behavior of this virus, which is difficult to predict.
The Fund expected last April that the global economy would shrink by 3%, to record the largest decline since the Great Depression in the thirties of the last century, to be followed by a partial recovery in 2021. But he warned that the results could be worse, which depended on the course of the pandemic.
Georgieva warned last Friday that a retreat to protectionist policies could weaken prospects for a global recovery at a critical stage.
Asked how concerned she is about the potential for US-China tension to affect the global economy, Georgieva said it is very important for us to resist what may be a natural tendency to retreat behind our borders.
She said that the revitalization of world trade is necessary to ensure a global economic recovery, adding that otherwise costs will rise and incomes will decrease and we will be in a less secure world.
She added that the fund has already provided emergency funding to 50 of the 103 countries that requested help.
The poor countries still face a great risk in light of the sharp decrease in remittances and the decline in commodity prices, even with the death rates decreased due to the corona pandemic, in some of the wealthier countries. .
