The Head of IMF: Due to Coronavirus the Economic Crisis May be Worse than the Great Depression

Kristalina Georgieva called for maximum efforts to restore the global economy Economic forecasts that the coronavirus pandemic will cause the deepest economic crisis since the Great Depression may be too optimistic, IMF head Kristalina Georgieva said. Speaking to the Atlantic Council on Monday, Georgieva again called for more funds to be allocated to reconstruction efforts. “Do as much as you can and a little more because this is the only way to overcome the first stage,” she said. According to Georgieva, the pandemic caused a “truly global crisis” because it “hit everywhere at the same time”, forcing, in essence, “the global economy stopping”. According to the new IMF forecast, per capita income growth this year may turn out to be negative in 170 countries. She added that the situation could worsen if in the second half of the year the consequences of the pandemic are still tangible and it will remain to either restore restrictive measures or open economies very slowly. Georgieva also emphasized the significance of the virus-related uncertainty: “We just don’t know what will happen next.” Of particular concern is the situation in developing countries. “I am worried about those countries that even before this crisis, were in a weakened position,” the head of the IMF said. “Just as the virus hits harder on those who have a weakened immune system or have comorbidities so the economic crisis hits harder on weakened countries.” Georgieva assured that the IMF is ready to provide assistance to these countries. According to her, to date, the fund has four times more funds than before the global financial crisis because this experience has pushed the world to increase the fund's capabilities.