Coronavirus: Worst economic crisis since 1930s depression, IMF says

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three-quarters of the world’s employees have seen their place of job shut finally partially in the course of the pandemic, the UN sys

The coronavirus pandemic will flip world economic development “sharply negative” this yr, the top of the International Monetary Fund (IMF) has warned.

Kristalina Georgieva stated the world confronted the worst economic crisis since the Great Depression of the 1930s.

She forecast that 2021 would solely see a partial restoration.

Lockdowns imposed by governments have pressured many firms to shut and lay off employees.

Earlier this week, a UN examine stated 81% of the world’s workforce of three.three billion individuals had had their place of job totally or partly closed due to the outbreak.

Ms Georgieva, the IMF’s managing director, made her bleak evaluation in remarks forward of subsequent week’s IMF and World Bank Spring Meetings.

Emerging markets and creating international locations could be the toughest hit, she stated, requiring tons of of billions of {dollars} in overseas support.

“Just three months ago, we expected positive per capita income growth in over 160 of our member countries in 2020,” she stated.

“Today, that number has been turned on its head: we now project that over 170 countries will experience negative per capita income growth this year.”

She added: “In fact, we anticipate the worst economic fallout since the Great Depression.”

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2021 would solely see a partial restoration, Ms Georgieva stated

Ms Georgieva stated that if the pandemic eased within the second half of 2020, the IMF anticipated to see a partial restoration subsequent yr. But she cautioned that the state of affairs might additionally worsen.

“I stress there is tremendous uncertainty about the outlook. It could get worse depending on many variable factors, including the duration of the pandemic,” she stated.

Earlier this week, the International Labour Organization (ILO), a UN company, warned that the pandemic posed “the most severe crisis” since World War Two.

It stated the outbreak was anticipated to wipe out 6.7% of working hours internationally in the course of the second quarter of 2020 – the equal of 195 million full-time employees dropping their jobs.

Last month, the Organisation for Economic Co-operation and Development (OECD) warned that the worldwide financial system would take years to recuperate.

Secretary common Angel Gurría stated that economies have been struggling a much bigger shock than after the 9/11 terror assaults of 2001 or the 2008 monetary crisis.

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