IMF: World Economy Worst Since the Great Depression of 1929
When the Corona virus infection case was first reported at the end of December, who would have thought that the impact of the outbreak would trigger global scale malaise? Recent developments even show a picture of economic conditions that are getting worse and worse.
The leadership of the International Monetary Fund (IMF) warned that the world economy this year is likely to suffer the worst recession since the Great Depression (1929-1939). Developing and low-income countries in Africa, Latin America and Asia are at the greatest risk. However, developed countries will also suffer very bad economic impacts.
The current IMF basic outlook places the possibility of a partial recovery of the global economy only beginning in 2021. That, too, is in the best scenario only if the pandemic fades in the second half of the year, allowing for the slow lifting of various emergency policies implemented to stem the pandemic and have a negative impact. on the economies of various countries.
In the text of yesterday's speech, IMF Managing Director Kristalina Georgieva also stressed that uncertainty regarding the duration of the Corona virus pandemic could make the situation worse. The pandemic has spread throughout the world, resulting in the closure of companies and millions of layoffs. In particular, Georgieva underlined a number of industries that were most severely affected including retail, hospitality, transportation and tourism, as well as SMEs and entrepreneurs.
"The gloomy outlook applies to developing and developing economies," Georgieva said, "This crisis knows no bounds. Everyone suffers."
The IMF estimates that governments from various countries around the world have taken fiscal steps totaling around USD8 Trillion. Even though the numbers are already very large, Georgieva still stresses the importance of continuing to promote efforts to stem the pandemic and support the health care system; targeted financial and fiscal sector policies; reduce financial system pressures and avoid spread; and plan for recovery later.
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