IMF chief says Coronavirus will begin worst recession since the Great Depression
The International Monetary Fund (IMF) believes that the year 2020 is going to be very bad for the global economy. The IMF estimates that this year the global economy will witness the biggest decline since the Great Depression of the 1930s. IMF Director Kristalina Georgieva said on Thursday that in 2020 more than 170 countries of the world will have per capita income.
In his address on the topic ‘Coping with Crisis: Priorities for the Global Economy’ ahead of next week’s IMF and World Bank meeting, Kristalina Georgieva said that today the world is facing a crisis that it had never seen before. Covid-19 has rapidly deteriorated our economic and social status. We had never seen this before.
She said that due to this virus people are dying and lockdown has to be done to combat it, which has affected billions of people. All was normal a few weeks ago. Children were going to school, people were going to work, we were with family and friends. But today there is a risk in doing all this.
Georgieva stated that the world is exceptionally uncertain about the duration of this crisis. But it is already clear that in 2020 the global growth rate will decline strongly. She said, “We anticipate that we will see the biggest decline since the Great Depression.”
The IMF chief said that just three months ago we anticipated that per capita income would increase in 2020 in our 160 member countries. Now everything has changed. The per capita income is now projected to decline in more than 170 countries. The Great Depression is known as the worst phase of the world’s economy. It began in 1929 with the collapse of the New York Stock Exchange on Wallstreet in the US. The Great Depression had lasted nearly ten years.In some countries the effects lasted till World War II.
