(Photo: Xinhua)

Washington (People’s Daily) - “The loss of human life from the coronavirus (COVID-19) pandemic is already immeasurable, and every country needs to work together to protect people and limit economic damage. This is a moment for solidarity,” said International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Monday following a conference call with G20 finance ministers and central bank governors. 

Georgieva also said the outlook for global growth for this year is negative, and a recession like the global financial crisis or worse could happen, but recovery would be expected for 2021.

“The economic impact is and will be severe, but the faster the virus stops, the quicker and stronger the recovery will be. The IMF strongly supports the extraordinary fiscal actions many countries have already taken to boost health systems and protect affected workers and firms and welcomes the moves of major central banks to ease monetary policy. Even more will be needed, especially on the fiscal front,” she said.

For advanced economies, the IMF feels they are positioned to respond better to the pandemic, but emerging markets and low-income nations could face significant challenges. 

Smaller countries are negatively affected by outward capital flow, and domestic activity will be impacted as countries respond to the pandemic. Investors have already removed $83 billion from emerging markets since the crisis began, marking the largest capital outflow ever recorded. 

The IMF said it is prepared to support its members and is particularly concerned with low-income countries in debt distress.

“These are extraordinary circumstances. Many countries are already taking unprecedented measures. We at the IMF, working with all our member countries, will do the same. Let us stand together through this emergency to support all people across the world,” Georgieva noted.