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three-quarters of the world’s staff have seen their place of business shut finally partially throughout the pandemic, the UN sys

The coronavirus pandemic will flip international economic development “sharply negative” this 12 months, the pinnacle of the International Monetary Fund (IMF) has warned.

Kristalina Georgieva mentioned the world confronted the worst economic crisis since the Great Depression of the 1930s.

She forecast that 2021 would solely see a partial restoration.

Lockdowns imposed by governments have pressured many firms to shut and lay off workers.

Earlier this week, a UN examine mentioned 81% of the world’s workforce of three.three billion individuals had had their place of business absolutely or partly closed due to the outbreak.

Ms Georgieva, the IMF’s managing director, made her bleak evaluation in remarks forward of subsequent week’s IMF and World Bank Spring Meetings.

Emerging markets and growing nations can be the toughest hit, she mentioned, requiring a whole lot of billions of {dollars} in overseas assist.

“Just three months ago, we expected positive per capita income growth in over 160 of our member countries in 2020,” she mentioned.

“Today, that number has been turned on its head: we now project that over 170 countries will experience negative per capita income growth this year.”

She added: “In fact, we anticipate the worst economic fallout since the Great Depression.”

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2021 would solely see a partial restoration, Ms Georgieva mentioned

Ms Georgieva mentioned that if the pandemic eased within the second half of 2020, the IMF anticipated to see a partial restoration subsequent 12 months. But she cautioned that the state of affairs may additionally worsen.

“I stress there is tremendous uncertainty about the outlook. It could get worse depending on many variable factors, including the duration of the pandemic,” she mentioned.

Earlier this week, the International Labour Organization (ILO), a UN company, warned that the pandemic posed “the most severe crisis” since World War Two.

It mentioned the outbreak was anticipated to wipe out 6.7% of working hours internationally throughout the second quarter of 2020 – the equal of 195 million full-time staff shedding their jobs.

Last month, the Organisation for Economic Co-operation and Development (OECD) warned that the worldwide economic system would take years to get better.

Secretary basic Angel Gurría mentioned that economies have been struggling a much bigger shock than after the 9/11 terror assaults of 2001 or the 2008 monetary crisis.

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