IMF sees pandemic causing global recession in 2020; recovery in 2021

The coronavirus pandemic will cause a global recession in 2020 that could be worse than that seen during the global financial crisis of 2008-2009, but the world’s economic output should recover in 2021, the International Monetary Fund said Monday.

IMF Managing Director Kristalina Georgieva welcomed extraordinary fiscal actions already taken by many countries to boost health systems and protect affected companies and workers, and steps by central banks to ease monetary policy, adding, “Even more will be needed, especially on the fiscal front.”

She said the IMF would massively step up emergency finance, noting that 80 countries had already requested its help. The Fund was ready to deploy all of its $1 trillion in lending capacity, she said.