NewsGate Press Network

The current economic crisis due to CoronaVirus pandemic is really very bad and is worst than the Great Depression of 1933, says IMF Chief.

The only way out is a big and massive response to be taken collectively by all nations to help in the recovery, IMF chief Kristalina Georgieva said Thursday on 09 April 2020.

Georgieva made these remarks at a  meet in Washington DC on 09 April 2020  titled “Confronting the Crisis: Priorities for the Global Economy”.

Her warning came highlighting  that “global growth will turn sharply negative in 2020,” with 170 of the International Monetary Fund’s 180 members registering a sharp decline in per capita income.

“In fact, we anticipate the worst economic fallout since the Great Depression,” she said.

Even in the best case the IMF expects only a “partial recovery” in 2021,  and IMF Chief added that governments to provide “lifelines” for businesses 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 duration of the pandemic.

Overall in the present scenario, the IMF says that countries already have taken to the tune of  $8 trillion, but Georgieva asked governments to do more to provide “lifelines” for businesses and households to “avoid a scarring of the economy that would make the recovery so much more difficult.”

On Tuesday the IMF will release its World Economic Outlook is expected to contain some gloomy forecasts for this year and next one.

Earlier this year in the month of January, IMF had projected global growth of 3.3 percent for 2020 and 3.4 percent in 2021. But that was a different world when virus had not bought the entire world into a lockdown mode.

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

The IMF Chief added that about $100 billion in investments had already made an hasty exit in emerging markets which accounts more than three times the capital exodus seen in the 2008 during the last recorded global financial crisis.