The International Monetary Fund (IMF) forecast in January that the global economy would grow by 3.3 percent in 2020, however its latest outlook, in April, now forecasts a contraction of 3.0 percent, with no upside scenarios and numerous risks.

The COVID-19 pandemic has created severe disruption in the global financial system, with many emerging market and developing countries (EMDCs) facing liquidity shortages.

The Coronavirus crisis could result in a catastrophic loss of life in poorer countries and push half a billion more people into poverty. Countries like the Central African Republic have just three ventilators for almost five million people, and Malawi has only a quarter of the nurses needed to provide healthcare for all.

The Covid-19 pandemic is taking a human toll and has unleashed a series of shocks on the Fund’s entire membership, creating severe disruption in the global economic and financial system.

The global economic recession and financial turmoil from COVID-19 are derailing implementation of the Addis Ababa Action Agenda and achievement of the Sustainable Development Goals (SDGs).

In the case of Zambia, The IMF projects that the economy will grow by a negative 2.6% in 2020 from the earlier projection of 3.6%. The economic adjustments due to COVID-19 will result in a severe drop in revenue. It is estimated that the budgeted revenue will fall short of target by at least K14.8 billion or 19.7 % of the approved 2020 budget.

The COVID-19-induced global recession, together with the economic effects of steps taken by the South African government to address the pandemic domestically, has made a challenging situation increasingly untenable.

The coronavirus disease (COVID-19) is attacking societies at their core. The IMF has just reassessed the prospect for growth for 2020 and 2021, declaring that we have entered a recession – as bad as or worse than in 2009.

Monitoring, containing and mitigating the effects of the corona virus are top priorities. Timely and decisive actions by health authorities, central banks, fiscal, regulatory and supervisory authorities can help contain the virus outbreak and offset the economic impact of the pandemic.

The 1997–1998 Asian financial crisis and the 2008–2009 global financial crisis emphasized the need for international cooperation in responding to systemic failure in an increasingly globalized financial system.