IMF warns coronavirus will hurt global economy “much worse” than 2008 financial crisis

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Topline: At a World Health Organization press conference on Friday, Kristalina Georgieva, director of the International Monetary Fund, warned that the economic fallout from the coronavirus was already “much worse than the global financial crisis of 2008.”

  • With more than half the globe—About four billion people – currently locked out or in some form of home stay order due to the coronavirus pandemic, diving into business has created an economic crisis “like no other” , warned the director of the IMF on Friday.
  • “Never in the history of the IMF have we seen the world economy stalled,” said Georgieva. During the 2008 financial crisis, the global economy lost more than $ 2 trillion in value, down almost 4% from what it was before, according to Moody’s Analytics.
  • She described the current crisis as “the darkest hour of humanity” in her life because it poses “a great threat to the whole world and it forces us to stay united.”
  • The IMF has a $ 1 trillion war chest and is “determined to use as much as necessary,” she said. To date, more than 90 countries have requested financial assistance.
  • “We have never seen such a growing demand for emergency funding,” said Georgieva, while urging countries receiving funding to use this money to support their health systems.
  • Developing economies are the most affected by the epidemic, as they have fewer resources to cope with the economic fallout from the pandemic, she said. “We know that in many countries, health systems are weak,” she added.

Crucial quote: “I believe that bringing epidemiology and the economy together is absolutely crucial,” said Georgieva on Friday. “My closing message is that we will get through this, but speed and efficiency will depend a lot on the actions we take.”

Crucial statistics: There are now more than a million confirmed cases of coronavirus worldwide, causing at least 56,767 deaths, according to The data from Johns Hopkins University.

Tangent: WHO director-general Tedros Adhanom Ghebreyesus also advised against rushing to quarantine the coronavirus on Friday, saying he would risk an “even more serious and prolonged” economic slowdown. Similar to his comments earlier this week, he warned that without government blockages, the coronavirus would kill even more people. Also at the WHO press conference, senior officials warned that “more and more” young people are getting sick and dying from coronavirus, according to the data.

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