Acting Head of IMF talks about impending economic slump

Acting Head of IMF talks about impending economic slump

The IMF or International Monetary Fund is one of the world’s premier financial institutions and is accountable for providing monetary help to countries around the world. The recent explosion of the COVID-19 crisis has brought with it tons of concern. In a recent interview, the acting head of the IMF spoke on these issues to give her thoughts on the matter.

Latest State of the economic system, what does it look like?

Almost every category of economic indicators has been indicating a horrifying fact with many of the numbers being seen for the first time since the original Great Depression. It is hard to anticipate what these numbers will look like come the end of the year because right now there have so many things up in the air. One thing is certain you cannot deny that the numbers for several key indications are distressing.

Current Unemployment

Unemployment levels across the globe have exploded in the last month with more than 20 million newly unemployed in the United States alone. Many countries across the world either already are or will soon be going through unemployment levels not seen since the 1930s.

Existing GDP Forecasts

At the beginning of this year, most organizations anticipate for the year included healthy if modest GDP growth around the world. Of course, the models had some countries performing better than others but overall widespread good fortune. Today the story is very much different. Nearly across the board countries are forecasting negative GDP growth.

How are Industries Suffering

There are many industries such as the airline industry that are getting as much as 90% or more decline in their revenues year over year. Some industries are being impacted more than others but the devastation is pretty much-affecting everyone in some way.

How effective is the Approach to Crisis

Right now the leader of the IMF has claimed they are pursuing a cautious approach. It is wise not to disregard the health crisis that is still going around the planet. Their interventions are supposed to avoid as much pain as possible and they are paying careful attention so as to not forget the countries that require help the most . Especially those that are scrambling in the developing world.

More information can be found on the IMF website.

Abbey

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