The global economy, businesses and financials remained in jitters on account of the widening spread of Coronavirus. Meanwhile, the International Monetary Fund (IMF) issued a warning that the spreading virus will hamper worldwide growth. The IMF’s cautionary words came at the two-day meeting of central bank governors and ministers of G20 nations in the Saudi Arabian capital, Riyadh.
IMF chief Kristalina Georgieva said that the virus’ outbreak could lead to the cutting down of about 0.1 per cent of the global growth. With respect to China itself, the IMF has brought down the east Asian country’s growth rate to 5.6 per cent for 2020. As of now, according to official figures presented, 2,345 people have died because of Coronavirus in China.
Georgieva shared, “Global growth would be about 0.1 percentage points lower. But we are also looking at more dire scenarios where the spread of the virus continues for longer and more globally, and the growth consequences are more protracted.”
Bruno Le Maire, speaking with the media at the meeting, added, “The question remains open: whether it will be a V-shape with a quick recovery of the world economy or whether it would lead to a L-shape with a persistent slowdown in world growth. This is the key question.”
The meeting also saw other important subjects in the global financial sector being discussed at length – from global taxation system to digital currencies, and even money-laundering – but Coronavirus was the primary topic of concern for all representatives attending it.