IMF Says the World May Face Worst Economic Fallout in Century

• IMF Says the World May Face Worst Economic Fallout in Century

The International Monetary Fund (IMF) once again has reiterated that the world may plunge into the worst economic recession since the Great Depression.

Chief Kristalina Georgieva, Managing Director, IMF disclosed this on Thursday.

She said the global coronavirus pandemic is hurting and causing economic damage unlike any in the past century and will require a broad economic response to aid global recovery.

The IMF boss warned that “global growth will turn sharply negative in 2020,” with 170 of the International Monetary Fund’s 180 members experiencing a decline in per capita income.

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

Even in the best case the IMF expects only a “partial recovery” next year, and she urged governments to provide “lifelines” for businesses and households to “avoid scarring of the economy that would make the recovery so much more difficult”.

It would be recalled that the fund had stated that the world’s economy was negative as most of its member states have already filed for financial assistance to curb the impact of COVID-19 on their economy.

“First, the outlook for global growth: for 2020 it is negative — a recession at least as bad as during the global financial crisis or worse. But we expect recovery in 2021. To get there, it is paramount to prioritise containment and strengthen health systems — everywhere.”