IMF: Damage to global economy from Coronavirus pandemic is expected to reach $12 trillion by end of 2021

The International Monetary Fund (IMF) Managing Director Kristalina Georgieva said that the damage from Coronavirus pandemic to the global economy is expected to reach $12 trillion by the end of 2021, warning of a new wave of COVID-19 pandemic that may cause further halt in global economic activities.

In statements to media outlets on Saturday, Georgieva said that the financial costs of the measures that aim to contain the Coronavirus pandemic and reduce its economic consequences raise global debt levels. She pointed out that the Coronavirus impact will be greater on poor countries whose economies will decline by 13%.

 She went on to say that the global financial measures, which reached about $11 trillion, in addition to the pumping of huge liquidity by the central banks, have curbed the decline of the global economy.

Last month, the IMF again reduced its expectations concerning the global production in 2020.  It expected a shrink at 4.9% and weaker recovery in 2021.

Hamda Mustafa