Anchor: Amid worldwide concerns over the economic fallout from the new coronavirus outbreak, the International Monetary Fund(IMF) issued a report warning that the downside risks from the health scare could derail the global economic recovery. The IMF advised South Korea to maintain an expansionary monetary policy. 
Choi You Sun has more.

Report: In a report published ahead of the Group of 20(G20) finance ministers' meeting in Saudi Arabia this week, the International Monetary Fund(IMF) on Wednesday said further spread of COVID-19 could pose sharp downside risks and derail global economic recovery.

Calling the virus' outbreak a "human tragedy," the IMF said it is disrupting economic activity in China, halting production and limiting mobility around affected regions.

It said spillover to other countries is expected, through tourism, supply chain links and commodity price effects.

Stating that China's short-term outlook will depend on the success of containment efforts, the report said should such efforts succeed, pent-up demand could spark resumption of economic activity to help the global economy bounce back in the year's second half.

If the impact turns out wider and more protracted, or if lingering uncertainty continues, the paper said the outbreak could "intensify supply chain disruptions and depress confidence more persistently, making the global impact more severe."

The IMF said while global growth appears to be bottoming out, with a growth forecast of three-point-three percent this year compared to last year's two-point-nine percent, the projected recovery is "fragile and shallow."

The Washington-based institution also cited renewed trade tensions between the United States and China and rising protectionism as other risk factors that could impede the short-term global recovery.

The report urged policymakers to maintain active fiscal and monetary policy support to maintain the recovery momentum.

As for South Korea, it advised the country to maintain loose monetary conditions until inflation is close to or above the target and to expand monetary accommodation.

Meanwhile, global credit rating agencies Moody's and Standard and Poor's(S&P) both sharply lowered their growth outlook for South Korea in 2020, citing the coronavirus outbreak.

Moody's slashed its forecast from two-point-one percent to one-point-nine percent, while S&P cut its outlook from two-point-one percent to one-point-six percent.
Choi You Sun, KBS World Radio News.