The whole world is now under the clutches of the Novel Coronavirus. However, amidst the crisis, the world is now in a global recession of 2020. The setback of the entire economy caused by the pandemic led to this. Thus, the world is under downturn may be worse than that in 2009.
International Monetary Fund director on Friday addressed the press by ” It is clear that we have entered a recession.” She also said that the economy will only get better in 2021. Moreover, the developing nation will get affected by the crisis. The outcomes prediction is already given by Astrotalk. This crisis will lead to a hike in the prices of basic commodities. The automobile sector, real estate construction sector, and student debt loan will decline.
Impact of Global Recession of 2020
Over 80 countries have already asked for help from the IMF.
“A key concern about a long-lasting impact of the sudden stop of the world economy is the risk of a wave of bankruptcies and layoffs that not only can undermine the recovery but erode the fabric of our societies,” She said.
Furthermore, she reported that not only developing nations but several developed nations are facing recession.
Kristalina Georgieva said that Kyrgyzstan would be the first nation to receive the aid of 120.9 million to combat COVID19.
In addition, she promised to lend 1 trillion dollars of its resources to the countries affected by the virus.
“We have seen an extraordinary spike in requests for IMF emergency financing,” Georgieva said. “We are being asked by our members to do more, do it better and do it faster than ever before.”
“A key concern about a long-lasting impact of the sudden stop of the world economy is the risk of a wave of bankruptcies and layoffs that not only can undermine the recovery but erode the fabric of our societies,” she confirmed.
The economic depression will have a serious impact on the poor nation battling coronavirus. Moreover, many people will lose their jobs and will be forced to sit at home. Only the coordinate of the countries can save us from this threat.
The control over the pandemic can nad only help the economy to stabilize. Let us all do our bit and stay home in quarantine. This way the virus won’t spread at an unprecedented rate and the world recover soon.