IMF expects China's economy to return to normal in Q2

Managing Director of the International Monetary Fund Kristalina Georgieva arriving at the Murabba Palace in Riyadh during the G20 finance ministers and central bank governors meeting. She believes China's economy to "return to normal in the second quarter" of 2020. - AFP

RIYADH: The International Monetary Fund (IMF) Managing Director Kristalina Georgieva said here on Sunday (Feb 23) that she expects China's economy to "return to normal in the second quarter" of 2020.

"The Chinese authorities are working to mitigate the negative impact (of Covid-19) on the economy," Georgieva said, adding that she "had an excellent discussion" with Chinese senior officials.

"In our current baseline scenario, announced policies are implemented and China's economy would return to normal in the second quarter," Georgieva said.

"As a result, the impact on the world economy would be relatively minor and short-lived," she said at the G20 Finance Ministers and Central Bank Governors Meeting.

Georgieva also expressed her "deepest sympathies" to the people in China and other affected areas, saying "the IMF stands ready to help."

To avoid more dire scenarios, "global cooperation is essential to the containment of the COVID-19 and its economic impact, particularly if the outbreak turns out to be more persistent and widespread," Georgieva said.

She also warned of "the potential risk for fragile states and countries with weak health care systems." Xinhua/Asian News Network