IMF: Global economy facing deep recession due to COVID-19

The International Monetary Fund said that the global economy is facing a deep recession with the ongoing impact of COVID-19.

"Uncertainty remains around the outlook, alongside long-term forces that shape and influence countries' response to the virus and the recovery.

People all over the world have seen profound changes in their lives: economic recession; unemployment; climate change; technology and the automation of jobs; the rise of digital currencies; lower returns on their savings; as well as rising inequality and debt," the 2020 IMF annual report reads.

"As the world faces a crisis like no other, the IMF and its members have swung into action. National governments took bold steps to save lives and put a floor under the world economy; with nearly $12tn in fiscal actions and about $7.5tn in monetary actions," also said Kristalina Georgieva, IMF Managing Director, in the report's introductory message.

"This year, as the world faced a crisis like no other, the IMF and its members also swung into action. National governments also took bold steps to save lives and put a floor under the world economy; with nearly $12tn in fiscal actions and about $7.5tn in monetary actions."

The package of measures endorsed as part of the quota review approved by the Board of Governors in February 2020 preserves our financial firepower.

These measures also include the doubling of the new arrangements to borrow and a new round of bilateral borrowing arrangements, which are expected to be effective in January 2021," she continued.

The 2020 IMF annual report focuses on COVID-19 response, the impact of economics on people's lives, debt, climate change, as well as fintech.