The International Monetary Fund (IMF) has warned that the global economy was facing a deep recession with the ongoing impact of Covid-19.

 

"Uncertainty remains around the outlook, alongside long-term forces that shape and influence countries’ response to the virus and the recovery. People all over the world have seen profound changes in their lives: economic recession, unemployment, climate change, technology and the automation of jobs, the rise of digital currencies, lower returns on their savings, and rising inequality and debt," stated IMF in its 2020 annual report.

 

"This year, as the world faced a crisis like no other, the IMF and its members swung into action. National governments took bold steps to save lives and put a floor under the world economy, with nearly $12 trillion in fiscal actions and about $7.5 trillion in monetary actions," said Kristalina Georgieva, IMF Managing Director, in the report's introductory message.

 

The package of measures endorsed as part of the quota review approved by the board of governors in February preserves our financial firepower, she noted. 

 

"These measures include the doubling of the New Arrangements to Borrow and a new round of bilateral borrowing arrangements, which are expected to be effective in January 2021," she added.

 

The 2020 IMF Annual Report focuses on Covid-19 response, the impact of economics on people’s lives, debt, climate change, and fintech.-TradeArabia News Service