Kristalina Georgieva: We Expect the Worst Economic Fallout Since Great Depression
The global coronavirus pandemic is causing an unprecedented economic crisis and will require a massive response to secure a recovery, IMF chief Kristalina Georgieva said on Thursday, BGNES reports.
She warned that "global growth will turn sharply negative in 2020," with 170 of the International Monetary Fund's 180 members experiencing a decline in per capita income.
"In fact, we anticipate the worst economic fallout since the Great Depression."
Even in the best case the IMF expects only a "partial recovery" next year. States have already taken steps totaling $ 8 trillion, but Georgieva called on governments to do more to provide "lifelines" for businesses and households to "avoid a scarring of the economy that would make the recovery so much more difficult."
But "it may get worse" and "there is tremendous uncertainty about the forecasts" and the duration of the pandemic, AFP reported.
On Tuesday, the IMF will publish the World Economic Outlook with grim forecasts for its members for this and the next year. In January, the IMF projected global growth of 3.3% this year and 3.4% in 2021. But it was a different world back then.
"The gloomy prospects apply to both advanced and emerging economies. This crisis knows no boundaries. Everyone is affected," Georgieva said.
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