IMF to cut global growth outlook over coronavirus | HaB Korea.net

IMF to cut global growth outlook over coronavirus

Give us Stars

0 / 5 Rating: 0 0

Your voted rating stars are :

The International Monetary Fund (IMF) is cutting its global growth forecasts over the coronavirus outbreak. IMF managing director Kristalina Georgieva said the global economic outlook has shifted to “more dire scenarios” as the virus has spread undetected, though she added it is still difficult to predict the impacts.


IMF corona

“It is, unfortunately, spreading undetected more than initially was thought,” Ms. Georgieva said. “The moment it became clear it is no more just about China and maybe a small number of countries in Asia surrounding China, then the outlook on what the impact could be changed.” European finance ministers have also been warned that the outbreak threatens to plunge both France and Italy into recession, and the ripples from a prolonged outbreak could incite a “vicious” spiral of declining markets.

IMF corona


“A longer and more widespread epidemic could have a disproportionately negative impact through uncertainty and financial-market channels,” according to a European Commission briefing note on the economic impact, seen by Bloomberg. “Cascading effects could stem from liquidity shortages in firms that have to stop production, amplified and spread out by financial markets,” it said.

See Also:   First ever Global K-pop Star Joint online Audition Kicks off

The briefing paper for the region’s finance ministers provided the basis for a call between them on Wednesday to discuss their collective responses. The ministers spoke a day after the Group of Seven stopped short of coordinated action to support economies, and the US Federal Reserve sprung a surprise 50 basis point interest-rate cut. The aviation sector continues to be severely impacted by the coronavirus outbreak.

Recommended Korea Tour Packages


Lufthansa will ground 150 aircraft out of its total fleet of around 770 due to the corona-virus, the German airline said, confirming what company sources had told Reuters earlier. “We are dynamically adjusting our plans to reflect extraordinary circumstances,” a Lufthansa spokesman said, adding that 25 of the 150 grounded aircraft are long-haul jets. Last week, Lufthansa said it had grounded 23 long-haul aircraft.

See Also:   Discover Seoul Pass BTS Edition pickup and on-site purchase started

European airline bosses warned on Tuesday that the worst is still to come for the airline industry in terms of economic damage from the coronavirus outbreak. However, they predicted that travel demand could stabilize in the coming weeks.

corona

Despite the global impact of coronavirus, US stocks on Wall Street yesterday surged, with healthcare stocks providing the biggest boost after Joe Biden overtook Bernie Sanders to become the new front-runner in the race for the Democratic presidential nomination. European shares rose also rose yesterday, with defensive sectors gaining the most as investors grappled with the efficacy of monetary stimulus in offsetting the economic impact of the coronavirus.

Source: The Irish examiner

About the author

HaB Korea 해브코리아 We are tourism people, we are going to make you happy in Korea! It's your trip, HaB it your way.
Subscribe to Magazine HaB Korea via Email

Enter your email address to subscribe to our online Magazine HaB Korea and receive updates on the latest articles, events and special offers!

Thank you for subscribing. Please check your email and confirm your subscription.

Something went wrong.

Send this to a friend