Worst economic crisis since 1930s depression, IMF says

Worst economic crisis since 1930s depression, IMF says
  • Clock-gray 06:28
  • calendar-gray 10 April 2020

The coronavirus pandemic will turn global economic growth "sharply negative" this year, the head of the International Monetary Fund (IMF) has warned, APA reports citinng BBC.

Kristalina Georgieva said the world faced the worst economic crisis since the Great Depression of the 1930s.

She forecast that 2021 would only see a partial recovery.

Lockdowns imposed by governments have forced many companies to close and lay off staff.

Earlier this week, a UN study said 81% of the world's workforce of 3.3 billion people had had their place of work fully or partly closed because of the outbreak.

Ms Georgieva, the IMF's managing director, made her bleak assessment in remarks ahead of next week's IMF and World Bank Spring Meetings.

Emerging markets and developing countries would be the hardest hit, she said, requiring hundreds of billions of dollars in foreign aid.

"Just three months ago, we expected positive per capita income growth in over 160 of our member countries in 2020," she said.

"Today, that number has been turned on its head: we now project that over 170 countries will experience negative per capita income growth this year."

She added: "In fact, we anticipate the worst economic fallout since the Great Depression."

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