IMF expects pandemic to have worst economic consequences since great depression

EYEAFRICA TV: Washington D.C. USA: International Monetary Fund (IMF) Managing Director Kristalina Georgieva said Thursday the global economy will plunge into negative growth in 2020 because of the COVID-19 pandemic, and the IMF expected the worst economic consequences since the great depression in the last century.

As a very different crisis, the COVID-19 pandemic is disrupting the global social and economic order at a “lightning speed” and on an unprecedented scale. The depth and duration of the crisis remain highly uncertain, said Georgieva in the opening address of the 2020 Spring Meeting of the International Monetary Fund (IMF) Friday.

As a result, the global economy will suffer a sharp decline in 2020, with 170 countries and regions expected to experience negative growth in per capita income. The above content will be detailed in a new World Economic Outlook to be released next week.

Georgieva said if the pandemic subsides in the second half of this year, countries gradually cancel the prevention and control measures and restart economic activity, partial economic recovery will be possible in 2021, but there will be major uncertainties.

To promote the global economic recovery, Georgieva proposed a four-pronged plan: Continue to implement necessary prevention and control measures to support the health system; Adopt large-scale, timely and targeted fiscal and financial sector measures to protect affected people and companies; Reduce stress in the financial system and avoid contagion; Plan for a post-epidemic recovery.

Georgieva also said the International Monetary Fund currently has one trillion U.S. dollars of loan capacity to serve its members and is responding to emergency financing requests from more than 90 countries, which will ensure that it can meet the financing needs of about 100 billion U.S. dollars.

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