IMF considers various scenarios of impact of COVID-19 on global economy

The International Monetary Fund (IMF) considers various scenarios of the impact of the COVID-19 coronavirus on the global economy, said IMF managing director Kristalina Georgieva. The baseline scenario assumes that global economic growth in 2020 will be 0.1 percentage points lower than assumed in January 3.3 percent.

Georgieva indicated that the Chinese authorities are taking all measures to limit the negative impact of the coronavirus on the economy.

These activities include, among others increasing liquidity, introducing additional fiscal instruments and financial support.

“In our current baseline scenario, the announced programs will be implemented and the Chinese economy will return to normal in the second quarter. As a result, the impact on the global economy will be relatively small and short-term,” Georgieva said.

"In this scenario, growth in China in 2020 will amount to 5.6 percent. It is 0.4 percentage points less than in our January forecasts. Global economic growth would then be about 0.1 percentage points lower” she added.

(PAP)