IMF chief: too early to talk about the impact of coronavirus on the global economy

it is too early to speak about the economic damage from the outbreak of the Chinese coronavirus, but a blow to global economic growth must be “weak”, said the head of the International monetary Fund (IMF), Kristalina Georgieva, reports The Straits Times.

the death toll from the outbreak Covid-19 in China by the 13th of February exceeded 1,300 people, but has increased hopes that the flash can reach a maximum at the end of this month.

the IMF expects a “V-shaped blow”, with a sharp decline in activity in China, followed by a sharp recovery, meaning that is likely to be only “a moderate impact on the rest of the world,” said Georgieva.

She also warned that “it is too early to make predictions,” and the world economy is “somewhat less strong” than it was when China faced the SARS epidemic in 2003.

“China was different, the world was different. This coronavirus is clearly more efficient, and the world economy then was very strong,” she said.

the IMF predicts that China’s economy will grow by 6 percent this year, compared with growth of 10 percent in 2003.

American officials are also reluctant to give forecasts, but say that the impact on the us economy is likely to be short-lived.

“there is No doubt that this has a significant impact on China”, — said earlier the Minister of Finance of the USA Stephen Mnuchin. But for the US economy it is not expected that the coronavirus will have an impact after 2020.