The IMF or International Monetary Fund is one of the world’s most recognized financial institutions and is responsible for delivering monetary assistance to countries around the world. The recent surge of the COVID-19 crisis has brought with it tons of uncertainty. In a recent interview, the acting head of the IMF spoke on these issues to give her views on the matter.
The Current State of the Overall Economy
Almost every classification 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 predict 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 indicators are worrisome.
Unemployment levels throughout the globe have skyrocketed in the last month with more than 20 million newly unemployed in the United States alone. Many countries around the world either already are or will soon be going through unemployment levels not seen since the 1930s.
At the start of this year, many organizations forecast for the year included balanced if modest GDP growth around the world. Of course, the models had some countries doing better than others but overall widespread prosperity. Today the story is a great deal different. Nearly across the board countries are forecasting negative GDP growth.
What Industries are Affected
There are some industries such as the airline industry that are experiencing as much as 90% or more decline in their revenues year over year. Some industries are being impacted more than others but the damage is pretty much-affecting everyone in some way.
How Successful is the Approach to Crisis
Right now the leader of the IMF has said they are pursuing a cautious approach. It is wise not to dismiss 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 need help the most . Especially those that are having difficulties in the developing world.
More information can be found on the IMF website.