"It is clear that we have entered a recession, as bad or worse than 2009," she said in an online press briefing.

 

Georgieva said that a key concern of the "sudden stop" of the world economy is a wave of bankruptcies and layoffs that can not only undermine the recovery but can erode the fabric of our society.

 

For the emerging markets, she said the fund's estimates financial need of about $2.5 trillion to come of the current crisis. But she warned that the estimate is on the lower side. Over 80 countries already have requested emergency aid from the International Monetary Fund.

 

The IMF chief said that though in recession, a recovery is very much possible in 2021 if the virus is contained across the globe.

 

"We do project a recovery in 2021. In fact, there may be a sizeable rebound but only if we succeed in containing the virus everywhere and prevent liquidity problems from becoming a solvency issue," Georgieva said.