The ongoing COVID-19 outbreak has created an economic crisis “like no other” – one that is “way worse” than the 2008 global financial crisis, the International Monetary Fund’s head, Kristalina Georgieva, warned of April 3.
“Never in the history of the IMF have we witnessed the world economy come to a standstill,” Kristalina Georgieva, managing director of the IMF, said speaking at the World Health Organization’s headquarters in Geneva.
“This is a crisis like no other,” she said. “We have witnessed the world economy coming to a standstill. We are now in recession. It is way worse than the global financial crisis” of 2008-2009.
She emphasized that the current situation is “humanity’s darkest hour, a big threat to the whole world and it requires from us to stand tall, be united and protect the most vulnerable of our citizens.”
According to Georgieva, the IMF is working with the World Bank and other international financial institutions to alleviate the economic fallout from the outbreak. The IMF has a $1 trillion war chest, she said, adding “we are determined to use as much of it as necessary.”
“In fact, never in the 75 years history of our institution have so many countries found themselves in need of emergency financing – 85 countries have approached us so far, all at one time.”
The emerging markes and developing countries are especially affected. Ninety billion dollars left the emerging markets and developing economies, according to the IMF.
As the COVID-19 outbreak is killing vulnerable people (mostly elderly and people with severe underlying diseases), the economic crisis caused by anti-COVID-19 measures are destroying the states’ economies.
It becomes more and more evident that the threat from the COVID-19 outbreak is less than it’s presented by media outlets and the World Health Organization presents. Specialists and research centers even question the rationality of the WHO decision to declare it ‘pandemic’. However, the economic consequences of the current crisis could be, and the IMF says that they will be, devastating.
Since its very creation, the IMF has been the international institution providing interests of the global elites and international financial capital. Nonetheless, in the current conditions, even this institution is ringing an alarm bell and warning about the apparent negative effect of the COVID-19 pandemic hype.
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