Global output gains to reach the lowest

The coronavirus outbreak which was declared as an international public health emergency concern by the World Health Organization (WHO) has currently spread outside China and gripped the entire world. Currently the number of infected people is nearing 1 lakh around the world and 3000 people have already lost their lives due to this deadly coronavirus. This global outbreak of the deadly virus is expected to bring down the global economic growth and hold back this year’s global output gains to the lowest. The International Monetary Fund (IMF) has expressed its concern over this issue and its Managing Director Kristalina Georgieva has reported that world growth is now expected to be below the 2.9% rate. Trade wars had earlier pushed global growth rate last year and this year the coronavirus outbreak has done the same. Georgieva said, “Global growth in 2020 will dip below last year’s levels, but how far it will fall and how long the impact will be is still difficult to predict”. However, IMF has not clearly mentioned if the deadly virus outbreak could push the world economy into a recession any time soon. Georgieva informed that the IMF is gathering an emergency funding of $50 billion which would be made available to the poor and middle income countries with weak health systems to respond to the virus. 

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