The IMF or International Monetary Fund is one of the world’s premier financial institutions and is accountable for delivering monetary support to countries around the world. The recent explosion of the COVID-19 crisis has brought with it tons of uncertainty. In a recent interview, the acting head of the IMF spoke on these problems to give her views on the matter.
The Current State of the Economic System
Almost every classification of economic indicators has been showing a horrifying truth with many of the numbers being seen for the first time since the original Great Depression. It is hard to forecast 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 indicators are troublesome.
Existing Unemployment Levels
Unemployment levels throughout the globe have skyrocketed 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 going through unemployment levels not seen since the 1930s.
Current GDP Forecasts
At the beginning 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 performing better than others but overall widespread good fortune. Today the story is very much different. Nearly across the board countries are predicting negative GDP growth.
State the Industries Affected
There are some 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 said they are pursuing a careful approach. It is wise not to disregard the health crisis that is still going around the planet. Their interventions are designed to prevent as much pain as possible and they are paying careful attention so as to not overlook the countries that require help the most . Especially those that are having difficulties in the developing world.
More information can be found on the IMF website.