IMF Head goes over approaching recession

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

Understanding the Current State of the economic system

Almost every category of economic indicators has been indicating a horrifying truth with many of the numbers being seen for the first time since the original Great Depression. It is hard to foresee 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 signals are worrisome.

Unemployment Levels

Unemployment levels across the globe have erupted 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 suffering from unemployment levels not seen since the 1930s.

GDP Forecasts

At the start of this year, many organizations anticipate for the year included healthy 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 very much different. Nearly across the board countries are forecasting negative GDP growth.

How are Industries Impacted

There are many industries such as the airline industry that are seeing as much as 90% or more decrease 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 effective is the Approach to Crisis

Right now the leader of the IMF has stated 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 need help the most . Especially those that are scrambling in the developing world.

More information can be found on the IMF website.

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