The IMF has announced that the economic crisis caused by the corona virus outbreak is worse than they had anticipated. IMF President Kristalima Georgieva underlined that the latest data for many countries led to further downgrading their already pessimistic predictions.
According to Reuters, Georgieva warned the US and China not to reignite a trade war that would weaken the post-epidemic recovery.
LAST DATA BAD OF OUR FORECAST
Speaking at an event organized by the European University Institute, Georgieva pointed out that the latest data for many countries are below the IMF’s already pessimistic estimates.
“Unfortunately, for some economies, more unfavorable scenarios may occur if there is no rapid medical solution.” Stating that it is not known how the virus will behave, IMF President pointed out that it is difficult to make predictions.
Forecasting a 3 percent shrinkage for the global economy in 2020, the IMF emphasized that this figure was the heaviest crisis after the Great Depression in the 1930s. The IMF called the last epidemic crisis the “big isolation” (or major closure).
“There may be a natural tendency to retreat to the borders, and it is very, very important to resist,” said Georgieva, on the question of the possibility of a trade war between China and the USA climbing.
“Reviving global trade is critical for economic recovery,” said the IMF President.Otherwise, costs increase, revenues decrease and a less secure world ” found the assessment.
The IMF has financed 50 out of 103 countries seeking financial assistance due to the corona virus outbreak.