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IMF cuts growth forecast and provides €45bn loan fund to fight virus impact

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International Monetary Fund (IMF) Managing Director Kristalina Georgieva. Photo: Jose Luis Magana/AP

International Monetary Fund (IMF) Managing Director Kristalina Georgieva. Photo: Jose Luis Magana/AP

International Monetary Fund (IMF) Managing Director Kristalina Georgieva. Photo: Jose Luis Magana/AP

The faster spread of the coronavirus will wipe out any hope of stronger growth in 2020, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said yesterday, adding that a third of the Fund's 189 member countries were now affected.

Ms Georgieva said - after speaking to the IMF's steering committee - that the Fund now expects 2020 global growth will be below the 2.9pc rate for 2019 and forecasts will be revised. The changed view would represent more than a 0.4 percentage-point drop from the 3.3pc 2020 growth rate that the IMF had forecast in January based on an easing of US-China trade tensions.

"Growth this year will fall below the level of last year," she said but declined to say whether the escalating health crisis could push the world into a recession.

Ms Georgieva and World Bank president David Malpass underscored the importance of coordinated action to limit the economic and human impact of the virus

The Fund is making available $50bn (€45bn) in low-cost loans.

Reuters

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