In an interview with Der Spiegel magazine, the Director General of the International Monetary Fund, Kristalina Gurgiyeva, expressed her fears that the new Corona virus will cause Europe to lag behind global technical progress, and provided a grim picture of what the global economic situation will be due to "Corona", She expressed a high degree of uncertainty about the speed with which the Chinese economy, and thus the global economy, may recover from the negative effects. Below are excerpts from the interview:

- The Chinese authorities closed several regions of their lands due to the virus, restricted movement in many regions, and closed many factories. To what extent will the spread of this virus slow the global economy?

We only have scenarios at this point, not expectations, and there is a high degree of uncertainty regarding the risks that the virus may pose to the global economy, and the speed with which China, and thus the rest of the world, may recover from the negative effects of the virus.

What do these scenarios look like?

- We expect that the virus will cause a severe global economic recession, followed by a strong push up after effective control of the virus, and if that happens, this virus will only cause limited losses, as was the case at the time of the spread of the SARS virus 17 years ago, at that time The disease caused global growth to decrease by 0.1 percentage point.

What is the probability that things will go smoothly this time?

It is still too early to set reliable forecasts, this virus is different from what is beyond it, and the other problem is that China has become more than twice the global economy, more than ever before. Moreover, the global economy was in the midst of a boom in 2003, and today we face many uncertainties that slow down economic growth.

The Chinese government has taken strict measures to contain the epidemic. Is crisis management in Beijing effective?

China has acted with strength and steadfastness, and the government has made a lot of effort to stem the spread of the virus. Moreover, the People's Bank of China has cut interest rates and pumped $ 115 billion in additional liquidity into the economy to support the economic situation. This was the right thing to do.

- Many experts believe that the consequences for Germany and Europe may be significant, especially due to the close economic ties with China.

We all have to adapt to the fact that our interconnected world has become less safe. First, there was tension in world trade, then conflict in Iran, forest fires in Australia, and now the virus has come. One might say that uncertainty is the new normal. Second, Europe is particularly vulnerable in four ways: low growth, low productivity, low inflation, and low interest rates. Europe must get rid of the trap of these four trends.

- Last fall, the International Monetary Fund spoke of a "simultaneous slowdown". Does this mean that the virus will make the economic situation worse?

- Since our last forecast, there have been disappointing economic data in places like India, Chile, and Hong Kong, but the United States and China have also entered into a trade agreement, which has reduced one of the biggest risk factors for the global economy. There was a simultaneous response from central banks around the world. Nearly 50 of them have cut interest rates in recent months.

Is this a step in the right direction?

Of course yes, in addition, many governments have increased their expenditures to boost growth. It was also useful. If we find that the epidemic has more serious consequences than previously assumed, we will take coordinated measures to support the global economy.

 € بقوة China acted with strength and steadfastness, and the government made a lot of effort to stop the spread of the virus, and the People's Bank of China cut interest rates, and pumped $ 115 billion in additional liquidity into the economy to support the economic situation.

• We all have to adapt to the fact that our interconnected world has become less safe.