Head of the IMF looks at approaching recession
The IMF or International Monetary Fund is one of the world’s leading financial institutions and is responsible for providing monetary assistance to countries around the world. The recent surge 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 problems to give her thoughts on the matter.
What is the Current State of the economic system?
Almost every category of economic indicators has been showing a horrifying reality 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 indications are worrisome.
Current Unemployment Levels
Unemployment levels across the globe have skyrocketed in the last month with more than 20 million freshly 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.
At the start 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 doing better than others but overall widespread good fortune. Today the story is a great deal different. Nearly across the board countries are forecasting negative GDP growth.
What Industries are Impacted
There are some industries such as the airline industry that are getting as much as 90% or more reduction in their revenues year over year. Some industries are being affected more than others but the devastation is pretty much-affecting everyone in some way.
Present Approach to Crisis
Right now the head 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 require help the most . Especially those that are struggling in the developing world.
More information can be found on the IMF website.