File photo: IMF Photograph:( AFP )
170 countries will experience negative per capita income growth this year and the developing nations will be the hardest-hit.
The biggest headline to emerge today is from the international monetary fund. The IMF chief has said that the coronavirus could trigger the worst fallout since the 1930s great depression.
This pandemic will soon turn the global economic growth 'sharply negative' and the crisis it'll trigger will carry on till next year. The IMF says it sees only partial recovery in 2021. The picture of the social and economic impact of this pandemic is getting bleaker.
170 countries will experience negative per capita income growth this year and the developing nations will be the hardest-hit. IMF says that investors have already removed 100 billion dollars in capital from such countries.
Even though they can only cover a portion of the costs on their own. This is where the I-m-f says it will step in. The chief of this body says they are ready to deploy 1 trillion dollars in lending capacity. It has doubled its emergency funding to 100 billion dollars to meet the requests of 90 countries. But it may not be enough. The solution they say is for creditors like china to temporarily stop collecting debt payments on their bilateral loans...
Will China agree? That remains to be seen.
We are hours away from a UNSC session on coronavirus crisis. We can only hope that they pass a resolution along these lines.