COVID-19: World Faces Worst Economic Fallout Since Great Depression – IMF

 

The global coronavirus pandemic is causing an economic crisis unlike any in the past century and will require a massive response to ensure recovery, IMF chief Kristalina Georgieva said Thursday.

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,” Georgieva said in a speech previewing next week’s spring meetings of the IMF and World Bank, which will be held virtually due to the restrictions imposed due to the COVID-19.

Even in the best case the IMF expects only a “partial recovery” next year, assuming the virus fades later this year, allowing normal business to resume as the lockdowns imposed to contain its spread are lifted.

But “it could get worse,” and “there is tremendous uncertainty around the outlook” and the duration of the pandemic.

READ ALSO: Pandemic May Cause Africa’s 1st Recession In 25 Years – World Bank

Countries already have taken steps worth a combined $8 trillion, but Georgieva urged governments to do more to provide “lifelines” for businesses and households to “avoid  scarring of the economy that would make the recovery so much more difficult.”

On Tuesday the IMF will release its World Economic Outlook with grim forecasts for its members for this year and next. In January, the IMF projected global growth of 3.3 percent this year and 3.4 percent in 2021. But that was a different world.

“The bleak outlook applies to advanced and developing economies alike. This crisis knows no boundaries. Everybody hurts,” Georgieva said.

She noted that about $100 billion in investments already had fled emerging markets — more than three times the capital exodus seen in the 2008 global financial crisis.

AFP

Anthonia Orji

Disqus Comments Loading...

Recent Posts

  • Coronavirus
  • World News

COVID-19: Spain Sees Lowest Virus Daily Toll In 17 Days

  Spain has recorded its lowest daily death toll from the new coronavirus in 17 days, with 605 people dying,…

2 mins ago
  • Local

Katsina Govt Receives Remaining Two Kidnap Victims

  Katsina State Government has received the last batch of passengers kidnapped on March 22 this year. The victims who…

16 mins ago
  • Coronavirus

NCDC Reviews Number Of Bauchi COVID-19 Cases, Apologises For Error

  The Nigeria Centre for Disease Control (NCDC) has reviewed the number of COVID-19 cases in Bauchi State from eight…

18 mins ago
  • Crime Watch

Man Arrested For Stealing New Born Baby’s Placenta In Ogun

  Joshua Abraham has been arrested by operatives of Ogun State police Command for stealing a new born baby placenta.…

1 hour ago
  • Local

Dangote Has Always Stood To Be Counted, Buhari Congratulates Businessman At 63

  President Muhammadu Buhari has congratulated businessman, philanthropist and foremost industrialist, Aliko Dangote on the occasion of his 63rd birthday. …

1 hour ago
  • Business

OPEC Members Except Mexico Agree To Output Cuts

    Major oil producers except Mexico agreed to cut output in May and June by 10 million barrels per…

1 hour ago