The raging COVID-19 outbreak that began in China and which now threatens a rapid contagion of Europe and the Middle East will slow down the already tepid global growth predicted for this year, said the International Monetary Fund (IMF).

On Saturday, IMF said COVID-19 will likely deduct 0.1% from global growth in 2020. It also estimates COVID-19 will hit China the hardest, reducing the country's GDP growth in 2020 to 5.6%, which is 0.4% lower than the IMF's January prediction but only if certain scenarios occur.

"But we are also looking at more dire scenarios where the spread of the virus continues for longer and more globally, and the growth consequences are more protracted," said IMF Managing Director Kristalina Georgieva at the G20 Finance Ministers and Central Bank Governors Meeting.

Georgieva said the IMF in January projected global growth strengthening to 3.3% in 2020 from 2.9% in 2019. Since this prediction was made, however, COVID-19 has mightily disrupted business and economic activity in China, the factory of the world and the world's largest oil importer, and has spread faster in Europe and the Middle East.

She also pointed out China is doing all it can to counteract the economic damage being inflicted by COVID-19.

"The Chinese authorities are working to mitigate the negative impact on the economy, with crisis measures, liquidity provision, fiscal measures, and financial support," according to Georgieva. "I have had an excellent discussion with Governor Yi Gang and other senior officials and assured them of our support for these policy measures."

Yi has been Governor of the People's Bank of China (PBOC), the country's central bank, since 2018. He's also Deputy Director of the Financial Stability and Development Committee of the State Council.

Georgieva said the IMF's current baseline scenario hinges on China implementing announced policies and if this does occur, China's economy might return to normal in the second quarter. As a result,the impact of COVID-19 on the world economy will be relatively minor and short-lived.

"In this scenario, 2020 growth for China would be 5.6%," said Georgieva. "This is 0.4 percentage points lower than the January WEO Update. Global growth would be about 0.1 percentage points lower."

Georgieva, however, admitted the IMF is also looking at more dire scenarios where the spread of COVID-19 continues far longer and and is spread wider globally. If these scenarios come to pass, the growth consequences will be more protracted.

She pushed for global cooperation in combating COVID-19, saying this is essential to containing the coronavirus and its economic impact, especially if the outbreak becomes more persistent and widespread. She also said now is the time to recognize the potential risk posed by COVID-19 to fragile states and countries with weak health care systems. Africa comes to mind in this account.

Georgieva said while the impact of COVID-19 continues to unfold, an assessment by the World Health Organization (WHO) is that with strong and coordinated measures, the spread of the highly-infectious coronavirus in China and globally "can yet be contained and the human tragedy arrested.

"We are still learning about how this complex virus spreads and the uncertainties are too great to permit reliable forecasting," she said. "Many scenarios can play out, depending on how quickly the virus is contained and how fast the Chinese and other affected economies return to normal.