IMF: No major hit from virus

THE INTERNATIONAL MONETARY FUND (IMF) does not currently anticipate major global economic fallout from the deadly coronavirus (Covid-19) outbreak.

The Central Bank of Barbados and Caribbean Development Bank both recently voiced concern about the potential harm Covid-19 could have for Barbados and the regional tourism and trade sectors.

However, in a statement at the G20 Finance Ministers and Central Bank Governors Meeting in Riyadh, Saudi Arabia, IMF managing director Kristalina Georgieva said her institution’s current position was that “the impact on the world economy would be relatively minor and short-lived”.

However, she cautioned that under “more dire scenarios where the spread of the virus continues for longer and more globally”, the growth consequences were “more protracted”.

Georgieva reminded representatives of the world’s largest economies that last month the IMF predicted that global growth would “strengthen from 2.9 per cent last year to 3.3 per cent this year”.

She noted that “since then, COVID-19 – a global health emergency – has disrupted activity in China”.

 (SC)