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IMF warns a global financial crisis: worse than the 2008 recession

TNW, March 25, New Delhi. As the world is struggling to contain the Corona Virus pandemic, the economists are warning that a terrible crisis is looming large. IMF Managing Director Kristalina Georgieva has recently said that the implication of the Corona crisis on world economy would be “a recession at least as bad as during the global financial crisis or worse”.

The Corona virus outbreak has already triggered the record collapse in business activities in China, Europe, USA, India and other major economies. Now, lock downs in a large part of the world has hit the market very badly. Cities come to virtual standstill as state and Federal governments in most part of the affected world have found no other options to stop the spread of pandemic but to lock down. 

Health experts have largely supported the government’s moves as they suggest that lock down will ensure the social distancing which will eventually cut the chain of transmission of the deadly virus.

However, many economist are not in favor of shut down such as Fox news host and former adviser to the then British Prime minister David Cameron, Steve Hilton warned that ‘an economic collapse would itself caused deaths and other hardships.’

American President Donald Trump tweet, “We cannot let the cure be worse than the problem itself”, signals he too is concerned about the economic impact of these restrictions. Trump was immediately denounced by detractors suggesting that he is listening to the advice of economists rather than Health experts. 

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