The world is facing the worst situation With the Great Depression, IMF

The world is facing the worst situation With the Great Depression, IMF

WASHINGTON: World financial institution (IMF) chief Kristalina Georgieva warns that the example of the economic crisis caused by the Coronavirus has not been found in the past century, and large-scale measures are needed to overcome the crisis.

The virus outbreak has engulfed 192 countries and territories around the world and infected a total of 1.5 million people, causing economic activity to be inactive worldwide.

In this regard, he said that the economic crisis in the world was the first of its kind in the world after the Great Depression of 1930.

The IMF chief said that the International Monetary Fund is concerned that "global growth will fall sharply" in 2020 and that its 170 member countries may face a reduction in per capita income.

He said the IMF expects only a "partial recovery" next year and a virus outbreak is expected later this year after which business can resume.

But the situation could get worse, there is a great deal of uncertainty around Outlook and the duration of the outbreak, he added.

Remember that the IMF will release its latest global economic outlook on Tuesday.

It is thought that 11.7 million jobs have been eliminated in the US since mid-March, and according to the latest weekly data released yesterday, 6.6 million people have applied for unemployment benefits.

The World Bank said the outbreak would be the first recession in Africa.

"We have a lending capacity of $ 10 trillion and have received applications from 90 countries for emergency financing," the IMF chief said.

It is clear that most countries have already taken joint measures for a total of $ 80 trillion, but the head of the IMF appealed to governments to do more.

It should be noted that according to US-based investor Standards & Poors, China can control the Coronavirus this year, if that happens, the Chinese economy will stabilize again by the end of 2020, while a recovery trip could take place in 2021.

The pandemic disease will affect not only China but the United States; 7% of tourists visiting the United States are Chinese, who spend an average of $ 6,000 per person on ship tickets, hotel rentals, restaurants, and shopping costs.

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