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IMF: the next two weeks will be decisive for determining the effects of coronavirus

UNITED STATES (OBSERVATORY NEWS) — The next two weeks will be crucial to determine the economic impact of the outbreak of coronavirus, said the managing director of the International Monetary Fund (IMF), Kristalina Georgieva.

Factories should open in China at this time, to better understand the resilience of China’s economy and the impact of coronavirus on the rest of the world, said Georgieva Hadley Gamble of CNBC at a conference in Munich.

According to her, the IMF is monitoring the spread of the new virus outside of China, she also said that it is “not yet the main problem,” but if it spreads to countries with a weak health system, such as Africa, the situation will change.

The National Health Commission of China previously reported another 121 deaths in the country, as well as more than 5,000 new confirmed cases of coronavirus.

The flu-like virus appears to have killed a total of 1380 people in mainland China as of February 13 evening.

Georgieva warned against comparing the new coronavirus with a global outbreak of SARS in the early 2000s, which the IMF is currently using as a guideline.

She explained that not only the strain of the new virus is different, but also the current situation in the economy of not only China, but the whole world. Georgieva pointed out that in the early 2000s, China accounted for only 8% of the world economy, and now China’s share is 19%.

She added that the world economy at that time was ““ actually in pretty good shape, ”but now has become more“ sluggish ”.

Georgieva thanked China for taking “two very important steps”, paying great attention to the areas affected by the outbreak, and providing its economy with high liquidity, along with lower interest rates and providing incentives for the affected areas to support the local economy.

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