Coronavirus. IMF forecasts higher economic crisis since the Great Depression

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Mexico city /

The managing director of the International Monetary Fund (IMF) warned that the pandemic coronavirus covid-19 will cause in the world, “the largest economic contraction since the Great Depression“; however, said that it has no doubt that we will be able to overcome this challenge.

“We still face an uncertainty extraordinary about the depth and duration of this crisis. (…) we now project that more than 170 countries will experience a negative growth in per capita income this year”, said in a statement.

Georgieva he described a scenario much more gloomy about the economic and social impact of the coronavirus regard to their views of just a few weeks ago, noting that the government had already taken steps to fiscal stimulus by $ 8 billion but that is likely to require more cash.

He said that the crisis would hit emerging markets and developing countries with more aggressiveness, so that it would cost hundreds of billions of dollars in assistance for those nations. If the pandemic begins to be mitigated in the second half of the year, the IMF expects a partial recovery of the economy in 2021, he added.

“I emphasize that there is huge uncertainty about the economic outlook: may get worse, depending on many variable factors, including the duration of the pandemic,” he said.

GGA





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