Palestine Economy Portal

The International Monetary Fund warned of a glooming future for the global economy, considering that the global recession caused by the Corona virus pandemic could be worse than the 2008 financial crisis.

"Mankind has incurred huge losses so far from the Corona virus pandemic, and all countries of the world must work together to protect their people and reduce economic damage," the director of the fund, Kristalina Georgieva, said after a conference of finance ministers and central bankers in the Group of Twenty.

"The prospects for global growth for 2020 are on the downside," she said. "At the very least, a recession is expected to be as bad as it was during the global financial crisis (2008), or worse. But we expect to recover in 2021. To achieve this The goal is very important to prioritize containment and health systems strengthening everywhere. The economic impact is already severe and will remain so, but the faster the virus stops spreading, the faster and more solid the recovery will become. ”

She warned that many emerging markets could be hit hard by the economic downturn, and called for "exceptional financial measures" and steps to ease monetary policy, Russia said today.

She also pointed out that the fund plans to "significantly increase emergency financing", and that it stands on "ready to use all the trillion dollar lending capacity", with a special focus on helping the poorest countries.

The director noted that nearly 80 countries have already requested the assistance of the fund, adding that work is under way to "replenish the trust fund for disaster containment and debt relief" to help the poorest countries.

The global financial crisis in 2008 and the decline that followed were considered the most severe economic disaster in recent history. A number of economists described the 2008 crisis as the most serious crisis since the Great Depression of the thirties of the last century.

Now the world is facing the repercussions of the outbreak of the Coruna virus, which the Fund fears will affect the world's economies.