The world’s economy has entered a recession and requires massive funding to help developing nations, Ms Kristalina Georgieva has declared.

Georgieva, the Managing Director of the International Monetary Fund (IMF), explained that this was as a result of the coronavirus (COVID-19) pandemic that has killed thousands of people around the world.

She stated this on Friday at a press briefing following a Conference Call of the IMF and Financial Committee (IMFC).

“We have reassessed the prospect for growth for 2020 and 2021. It is now clear that we have entered a recession – as bad as or worse than in 2009,” Georgieva announced.

She added, “We do project recovery in 2021 – in fact, there may be a sizeable rebound, but only if we succeed with containing the virus – everywhere – and prevent liquidity problems from becoming a solvency issue.”

.@KGeorgieva: It is now clear that we have entered a recession. We project a rebound in 2021, but only if we contain the virus and prevent liquidity problems from becoming a solvency issue.https://t.co/dg8FHiuftW#COVID19pic.twitter.com/BIbFaRB48u─IMF(@IMFNews) March 27, 2020

The IMF chief noted that IMFC, the governing body of the organisation representing 189 member countries, met earlier to discuss the threat posed to the world by coronavirus.

According to her, a major concern about the effect of COVID-19 on the global economy is the risk of a wave of bankruptcies and layoffs capable of eroding the fabric of the societies.

Georgieva, however, noted that many countries have taken measures to prevent this by address the crisis in their health sector. (AFP)