After the Great Depression of the 1930 World economy is passing by: IMF. Great Depression of Global Economy. The global economy could be worse than the Great Depression of the corona virus (COVID-19) epidemic, warned International Monetary Fund (IMF) chief Kristalina Georgieva.
Great Depression of Global Economy
He said that due to the lock down, many institutions were shutting down and workers were being cut off. The economies of the emerging countries and the developing countries will suffer the most. After the Great Depression, the world economy is passing through the worst.
The World Bank and the IMF’s Springtime Meeting will be held virtually online next week. He made such comments in a message given at the meeting.
The IMF chief noted that just three months ago, in 2020, our member expected to grow at a per capital rate of 160 countries. But now the statistics have changed drastically. We fear there will be a negative growth in per capital income in 170 countries. That is, the per capital income of these countries will decrease.
“Indeed, we fear the worst economic crisis since the Great Depression,” he said.
Georgieva said if the outbreak of the epidemic decreases by the middle of this year, it is expected that there will be a partial recovery next year. But he warned the situation could only get worse. Last week, a report by the International Labor Organization (ILO) said that 81 percent of the world’s labor force would be affected by the pandemic. The employment of 330 crore people will be directly or indirectly affected.
Kristalina Georgieva said it is now clear that the growth of the global economy will be sharply negative this year. The economy is slowing down due to initiatives taken to minimize the virus’s impact. The most affected are the retail business, the services sector, transportation and tourism. Self-employment and employment in the small and medium enterprises are highest in most countries.
It is important to note that during the 1930, the whole world changed in the global depression. Between 1929 and 1932, global GDP declined by about 15 percent. World trade is down about 50 percent. Some countries turned around later, but most of the countries did not return. Under the Great Depression, political change in many countries changed. The effect was until World War II.
The global economy has been hit by the global outbreak of the pandemic novelty coron avirus. Economists fear the Great Depression. At that time, Bangladesh sought international assistance of 5,911 crore Tk. billion and US $ 70 crore to the International Monetary Fund (IMF).
The Nikkei Asian Review reported this on Friday (April 10th). “We are reviewing the emergency assistance the government of Bangladesh wants,” IMF representative Ragnar Goodmandson told Nikkei on emergency assistance.
Prime Minister Sheikh Hasina on April 5 announced an incentive of Tk 72,750 crore to cover the financial loss of the deadly coroner. Nikkei’s report also highlights this information.
According to the report, FBCCI President Fazle Fahim, president of the top business organization, said, “The goal of the package announced by the government is to increase liquidity, reduce unemployment and keep business activities active.”
Fazle Fahim told Nikkei, “The FBCCI is working with the Ministry of Commerce and the Prime Minister’s Office on the fund. So that small companies that do not have access to bank loans get incentives. ”
Meanwhile, the International Monetary Fund (IMF) chief, Kristalina Georgieva, has warned that the global economy is going through the worst period since the Great Depression, given the deadly pandemic epidemic.
He said that due to the lock down, many institutions were shutting down and workers were being cut off. The economies of the emerging countries and the developing countries will suffer the most.