| Summary: |
The COVID-19 pandemic is having dramatic effects on the global economy. It has led to a shut-down of borders, a collapse of tourism and international passenger travel, a disruption of global trade and investment, and a sharp contraction of economic activity all over the world. Developing and emerging economies have also been hit by the largest-ever outflow of portfolio capital, crumbling commodity prices, a contraction of remittances, and depreciation of their currencies. As of 20 April, 103 developing countries have approached the International Monetary Fund (IMF) for emergency financing. IMF Managing Director Kristalina Georgieva has referred to the effects of COVID-19 as “the worst economic fallout since the Great Depression”. Both the IMF and UNCTAD reckon that emerging market and developing countries have an immediate need of $2.5 trillion.
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