Even in the best-case scenario, she said, IMF expects only ‘partial recovery’ next year. She also urged governments to provide assistance for businesses and households.
Washington| The international Monetary Fund (IMF) chief Kristalina Georgieva on Thursday said that that the coronavirus pandemic is causing worst economic crisis unlike any in the past century and it will require a massive response to recover from the economic fallout due to the deadly disease.
Georgieva said, “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 scenario, she said, IMF expects only ‘partial recovery’ next year. She also urged governments to provide assistance for businesses and households to avoid scarring of the economy that would make the recovery even more difficult.
“But it could get worse, and there is tremendous uncertainty around the outlook and the duration of the pandemic,” she added.
Globally, the countries have taken steps worth $8 Trillion to recover from the fallout. But Georgieva stressed that the countries should do more to provide “lifelines” to businesses and households.
On Tuesday, the IMP is scheduled to release its World Economic Outlook, predicted to provide grim forecasts to its members for this year and the next year.
In January, the IMF had projected 3.3% global growth for this year, and 3.4% in 2021. But at the present, after the economic crisis that has been created due to Covid-19 spread, the predictions are very unlikely to come true.
“The bleak outlook applies to advanced and developing economies alike. This crisis knows no boundaries. Everybody hurts,” she further added.
She observed that almost $100 billion in investments already had fled emerging markets- thrice the capital exodus recorded in the 2008 Financial crisis.
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