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World Faces The Worst Economic Fallout Since Last Century’s Great Depression, Warns IMF Chief

A file photo of IMF chief Kristalina Georgieva.  (Reuters)

A file picture of IMF chief Kristalina Georgieva. (Reuters)

Kristalina Georgieva mentioned that “global growth will turn sharply negative in 2020”, with 170 of the International Monetary Fund’s 180 members experiencing a decline of their per capita earnings.

  • AFP Washington
  • Last Updated: April 9, 2020, 11:46 PM IST

The world coronavirus pandemic is inflicting an financial disaster not like any prior to now century and would require a large response to assist in the restoration, IMF chief Kristalina Georgieva mentioned 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 earnings. “In fact, we anticipate the worst economic fallout since the Great Depression,” she mentioned.

Even in the very best case the IMF expects solely a “partial recovery” subsequent 12 months, and she or he urged governments to supply “lifelines” for companies and households to “avoid a scarring of the economy that would make the recovery so much more difficult.”

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

Countries have already got taken steps price a mixed $eight trillion, however Georgieva urged governments to do extra to supply “lifelines” for companies and households to “avoid a scarring of the economy that would make the recovery so much more difficult.”

On Tuesday the IMF will launch its World Economic Outlook with grim forecasts for its members for this 12 months and subsequent. In January, the IMF projected world development of three.three % this 12 months and three.four % in 2021. But that was a unique world.

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

She famous that about $100 billion in investments already had fled rising markets — greater than thrice the capital exodus seen within the 2008 world monetary disaster.

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