IMF chief says coronavirus could cause economic crash worse than the Great Depression
IMF chief: coronavirus economic crisis could be worse than the Great Depression
Kristalina Georgieva urged to make every effort to restore the global economy
Economic forecasts, according to which the coronavirus pandemic will cause the deepest economic crisis since the Great Depression, may be too optimistic, says IMF head Kristalina Georgieva.
Speaking Monday at the Atlantic Council, Georgieva reiterated her call for more funding for reconstruction efforts. “Do as much as you can, and a little more, because this is the only way to get past the first stage,” she said..
According to Georgieva, the pandemic caused a “truly global crisis” as it “hit everywhere at the same time”, forcing, in fact, “to stop the world economy.”.
New IMF forecast that per capita income growth this year could be negative in 170 countries.
She added that the situation could worsen if in the second half of the year the consequences of the pandemic are still felt and it is necessary to either restore restrictive measures or open economies very slowly. Georgieva also stressed the importance of the uncertainty associated with the virus: “We just do not know what will happen next.”.
The situation in developing countries is of particular concern. “I am worried about those countries that were in a weaker position even before this crisis,” said the head of the IMF. “Just as the virus strikes harder on those who have a weakened immune system or have concomitant diseases, so the economic crisis strikes harder on weakened countries.”.
Georgieva assured that the IMF is ready to provide assistance to these countries. According to her, today the fund has four times more funds at its disposal than before the global financial crisis, as this experience pushed the world to increase the fund’s capabilities..
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