Georgieva, president of the International Monetary Fund (IMF), said on April 9 that the global economy will fall sharply into negative growth in 2020, and the IMF expects the worst economic consequences since the Great Depression.
Three months ago, the IMF predicted that more than 160 of the member countries will achieve positive per capita income growth in 2020, and now it is expected that more than 170 countries will appear this year Negative growth in per capita income.
Georgieva stressed that both developed and developing economies will face a bleak economic outlook. This crisis knows no borders and everyone suffers. Among them, the fragile countries are hit hardest. Emerging markets and low-income countries in most regions of Africa, Latin America and Asia face higher risks.
In addition, in the past two months, capital outflows from emerging markets have reached nearly US $ 100 billion, more than double the global financial crisis over the same period. Commodity exporting countries have suffered double blows from the collapse of commodity prices.
The IMF ’s fiscal monitoring shows that countries around the world have undertaken fiscal actions of approximately US $ 8 trillion. In addition, the G20 and other countries have also implemented large-scale monetary measures. But many poorer countries have far fewer resources than rich countries.
Georgieva concluded that 2020 will be particularly difficult. If the epidemic subsides in the second half of the year, the prevention and control measures can be gradually cancelled and economic activities can be restarted. The IMF baseline assumes a partial economic recovery in 2021. However, there are significant uncertainties in this prospect, which may deteriorate due to many variables, including the duration of the epidemic.