IMF. Georgieva: worst crisis since the Great Depression, the budget measures 8,000 billion by the governments

2020-04-09T13:42:47.851Z

"We are facing a crisis like no other": global growth will be negative in 2020 and "we anticipate the worst decline since the Great Depression" of 1929. The director of the IMF, Kristalina Georgieva, said, underlining that the negative prospects concern advanced and developing economies. "This crisis has no borders" adds Georgieva, pointing out that if the pandemic disappears in the second half of the year, the IMF foresees a "partial recovery in 2021". "Just three months ago we expected per capita income growth in over 160 of our member countries in 2020. Today the number has reversed: we expect more than 170 countries will experience negative per capita income growth this year," he says. Georgieva. "In light of the containment measures to slow the spread of the virus, the world economy has basically" stopped and this is especially true "for retail sales, hospitality, transport and tourism. In many countries, the majority of workers are self-employed or employees of small and medium-sized enterprises. These activities and these workers are particularly exposed "to the coronavirus emergency, adds Georgieva pointing out that the health crisis is affecting the weakest and the economic crisis is expected to hit the countries hardest weaker. "All governments" have taken the field to tackle the coronavirus crisis and there has been significant coordination. The countries of the world have taken budgetary measures of around $ 8 trillion. To these are added important measures from the G20 and others ". Georgieva affirms it, underlining that the actions taken now" will determine the speed and strength of the recovery ". Continue the containment plan, reduce the stress on the financial system, protect the families and businesses with targeted measures and planning for recovery. These are the four priorities indicated by the IMF director general for the coronavirus emergency. "We must prevent liquidity pressures from becoming solvency problems and avoid a scar to the economy that it would make recovery even more difficult ", highlights Georgieva, specifying that" coordinated budgetary stimuli will be essential for the recovery. Where inflation remains low, monetary policy should remain accommodative. "