The head of the International Monetary Fund has issued a grim forecast about the world economy. As deaths from Coronavirus grow, most countries will also face a deep recession.
IMF chief Kristalina Georgieva said that almost all of the organization’s 189 members will see living standards decline this year. She said the economic effect would be the worst since the 1930s.
“Today we are confronted with a crisis like no other,” Georgieva said.
“Covid-19 has disrupted our social and economic order at lightning speed and on a scale that we have not seen in living memory,” she said.
“The virus is causing tragic loss of life, and the lockdown needed to fight it has affected billions of people.”
The IMF was predicting 3.3% global growth as little as three months ago. But Coronavirus has changed all that.
“In fact, we anticipate the worst economic fallout since the Great Depression,” the IMF managing director said.
“Just three months ago, we expected positive per capita income growth in over 160 of our member countries in 2020,” she went on.
“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.”
Georgieva’s comments come as U.S. unemployment claims rose by 6.6 million in a week, over a million more than expected.
“There is no question that 2020 will be exceptionally difficult,” the IMF chief said, adding things could improve in 2021.
Georgieva stressed that the situation was unpredictable and could be even worse than the IMF is currently predicting.
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