IMF encourages the countries to spend all they could in order to protect the lives of people and to contain the spread of this pandemic. IMF Managing Director MD Kristalina Georgiva on Thursday brought different economic challenges the countries are facing into the picture of Covid19 pandemic. IMF MD hinted that global economy is going to be affected badly by the pandemic and this is the worst recession since the great depression of 1930, when not only American marketz but whole Europe and other continents suffered the economic backlash. Leaders should work in the direction to save lives and livelihoods amid Health crises and economic challenges being faced by world.
IMF Managing Director urges the countries to take adequate steps and follow certain guidelines to combat the spread of this dreadful disease. This is difficult time for everyone but most affected ones are those countries and people with pre- existing problems and difficulties. Krostalina Georgiva the MD of Internation Monetory Fund says that IMF is considering options to lend a helping hand to all its member countries.
'We are experiencing a 3 percent contraction of global GDPs. And 170 countries are going to see income per capita falling versus what we expected from three months ago for a 160 for them to go up', IMF MD said.
It is a very unusual combination of a health crisis and an economic crisis that is simultaneously a supply and a demand shock. We are outlining three priorities under Global Policy Agenda. First - Protect Lives, second - protect livelihoods and third- prepare for recovery by working with the health professionals be ready with a fiscal stimulus and release it when it is actually the time, when demand can be lifted up, Managing Director of IMF said.
There are many other after effects of this pandemic including elevated debt levels, unemployment , bankruptcies and rising inequality. Kristalina Georgiva IMF Managing director expressed her gratitude to G20 for exceptionally rapid decision on debt relief for the poor countries.