IMF's Georgieva: IMF projects contraction of global output in 2020, recovery in 2021

An exceptionally large number of countries simultaneously require emergency financing, the International Monetary Fund's (IMF) Managing Director Kristalina Georgieva said on Thursday. Georgieva further added that their projections suggest that there will be a contraction in the global output in 2020 and a recovery in 2021.

Additional takeaways

"Depth of contraction and speed of recovery depend on containment of pandemic."

"Targeted fiscal support to households, businesses needed otherwise it will take years to overcome bankruptcies and layoffs."

"Emerging markets are the main focus of attention."

"Asked G20 to double emergency financing capacity."

"Asked G20 to boost global liquidity through sizeable (Special Drawing Right) SDR allocations."

Market sentiment

These comments had little to no impact on the upbeat market mood. As of writing, the Dow Jones Industrial Average and the S&P 500 were both up 3.8% on a daily basis.