International Monetary Fund (IMF) has clearly said that the world economy is going to face the worst crisis of 9 decades. IMF chief Kristalina Georgieva said that the ongoing COVID-19 crisis would trigger this crisis.
The IMF chief said it would require a massive response to ensure recovery. This would be the worst economic downfall since the “Great Depression” of the 1930s, she informed. As a result of the pandemic, a huge chunk of the global economy and markets are shut down.
“Global growth will turn sharply negative in 2020,” with 170 of the fund’s 180 members experiencing a decline in per capita income”, said the IMF head. The World Economic Outlook to be released by IMF in the coming week would put forward the grim forecasts for its members this year and next.
Partial recovery can be attained by the next year provided that the virus and its effect fades away in 2020. Globally the IMF has put out some troubling facts:
- US economy has purged 17 million jobs since mid-March
- The pandemic might cause the first recession in Africa in 25 years
- The US is moving “with alarming speed” from unemployment near a 50-year low
India’s economy which was already down going before the pandemic would now hit a new low. RBI has already said that the growth rate would be lower than expected.
