Amidst the coronavirus pandemic, an IMF official has claimed that 2020 could see the worst global economic fallout since the Great Depression in the 1930s. According to reports, IMF Managing Director Kristalina Georgieva claimed that over 170 countries were likely to experience negative per capita income growth due to the coronavirus pandemic.
As per reports, Georgieva made the remarks while she was addressing a gathering about ‘Confronting the Crisis: Priorities for the Global Economy’. Her comments come a week before next week's annual Spring meeting of the International Monetary Fund (IMF) and the World Bank. She added that the coronavirus crisis had disrupted social and economic order at lightning speed and on a very large scale.
According to reports, Georgieva claimed that the virus had already caused tragic loss of life and the various restrictive measures implemented to fight the virus had affected billions of people. Georgieva further claimed that only three months ago 160 were expected to have positive per capita income growth and now due to the virus the IMF projects that over 170 countries will experience negative per capita income growth this year.
Oxfam has reportedly warned that half a billion people could be pushed into poverty. According to a report that was recently released by the Nairobi-based charity, the impact of the crisis can have dire consequences on global poverty levels due to shrinking household incomes and consumption.
As per the report, the economic fallout from the coronavirus could be worse than the 2008 global financial crisis. The report indicates that the global poverty level could go up for the first time since 1990. The report also added that the crisis could send some vulnerable countries three decades back.
According to the report, in the most serious scenario, the number of people living in poverty (living on less than $5.50 a day) could rise by 434 million people to 922 million worldwide. The report also indicated that women were more at risk than men because they were more likely to work in the informal sector which has little to no employment rights.
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