IMF projects $28tn COVID-19 losses in five years

The Managing Director, International Monetary Fund, Kristalina Georgieva, has said the crisis from COVID-19 can lead to a global loss of $28tn in the next five years.

She said this during her opening remarks at the annual general meeting conference on Wednesday.

Georgieva said, “The picture over the last few months has become less dire, yet we continue to project the worst global recession since the great depression.

Growth is expected to fall to -4.4 per cent this year. And over the next five years, the crisis could cost an estimated $28tn in output losses.

“At the same time, we can see stars shining above us. We see unprecedented efforts in vaccine development and treatment.

“We see extraordinary and coordinated fiscal and monetary measures putting a floor under the world economy. And the world is starting to learn how to live with the virus.

While there is tremendous uncertainty around our forecast, we project a partial and uneven recovery in 2021, with growth expected at 5.2 per cent.

”As I said in my curtain raiser speech, all countries now face a “long ascent”—a journey that will be difficult, uneven, uncertain, and prone to setbacks.

“Think of how the virus is resurging in a number of countries.”

She made policy recommendations.

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