Coronavirus poses risk to global economy, says IMF

Washington, February 20

The coronavirus epidemic has already disrupted economic growth in China and its further spread could derail a “highly fragile” projected recovery in the global economy in 2020, the IMF warned today.

In a note for G20 finance ministers and central bankers, the global lender mapped out many risks facing the global economy, including the disease and a renewed spike in US-China trade tensions, as well as climate-related disasters.

IMF managing director Kristalina Georgieva said the outbreak was a stark reminder of how unforeseen events could threaten a fragile recovery, and urged G20 policymakers to work to reduce other uncertainties linked to trade, climate change and inequality.

“Uncertainty is becoming the new normal,” Georgieva wrote in a blog. “While some uncertainties — like disease — are out of our control, we should not create new uncertainties where we can avoid it.” — Reuters