“We never in the history of the IMF have seen the world economy stop,” said Georgieva. - We are in a recession, it is much worse than the global economic crisis.
As the head of the IMF estimated the negative consequences of the pandemic, global GDP may decline much more in 2020 than in 2009 during the global financial crisis. Its recovery will depend on how quickly the world stops the development of the coronavirus pandemic and overcome its consequences. Georgiev predict a wave of bankruptcies, job cuts and massive unemployment, which will not only undermine the economy, but also threaten to destroy the very foundations of society.
As the head of the International Monetary Fund noted, developing countries are affected as much as possible by the effects of the coronavirus pandemic. According to her, they have “fewer resources to protect against this double crisis - the health and economic crisis.”
Already 85 countries have applied to the IMF for emergency financial assistance. In the history of the foundation, which has 75 years, this has never happened before.
In the context of the rapid spread of coronavirus infection in the world, the developed authorities are trying in different ways to help citizens and businesses, providing feasible financial support, making credit, duty and rental concessions.
Earlier, the head of the Central Bank of Russia Elvira Nabiullina said that a non-working April could cost the Russian economy 1.5–2% of GDP.
Meanwhile, as Moscow Mayor Sergei Sobyanin said on the eve, regional “budgets will crack” if you start distributing money to those in need and those who suffered from forced weekends.
According to him, "most enterprises will have enough resources to provide that part of the people who are not working today."
“We are not talking about what should be dismissed for vacations for half a year,” because “we are talking about a month so far,” Sobyanin said the day before.