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The International Monetary Fund believes that this year the global economy is experiencing its worst recession since the Great Depression, with emerging markets and low-income countries in Africa, Latin America and Asia exposed to high risk.
According to Bloomberg, the fund’s director-general, Kristalina Georgieva, said in a speech on Thursday that half of the 189 member states were seeking help. The Executive Council agreed to double the access to emergency financing to meet the expected demand of about $ 100 billion.
Cristalina added that the fund’s basic expectations point to a partial recovery in the global economy in 2021 if the epidemic fades in the second half of this year, allowing for a gradual lifting of the closure procedures. She stressed that the uncertainty about the duration of the virus means that things could be worse.
The epidemic that spread from the Chinese city of Wuhan to nearly every corner of the world shut down businesses and lost millions of jobs. Cristalina highlighted the damage to the retail, hospitality, transportation and tourism industries and their impact on entrepreneurs and small and medium-sized companies.
Cristalina said, the International Monetary Fund estimates that governments around the world have taken financial measures amounting to 8 trillion dollars. She stressed the need to continue basic containment measures, support health systems, and protect those affected and businesses.
The Great Depression erupted 90 years ago and lasted for several years, as economies contracted and trade declined, and stock markets collapsed at the time, so it is one of the worst global economic crises in history.
And last month, veteran financial market analyst Stephen Isaacs said global financial markets were facing their worst crises since 1929, when the “Great Depression” broke out and caused losses.
