Today, Thursday, the International Monetary Fund predicted a decrease in per capita income in 170 countries this year, due to the outbreak of the emerging Corona virus (COFED-19).
“We expected positive growth in per capita income in more than 160 of our member countries in 2020,” added Kristalina Georgieva – the head of the International Monetary Fund – just three months ago.
“Today, this number has turned upside down: We now expect more than 170 countries to experience negative growth in per capita income this year.”
Countries around the world have taken financial measures to avoid the effects of the spread of the Corona virus, as about $ 8 trillion have been pumped out, according to the International Monetary Fund, but the fund expects the worst economic repercussions since the Great Depression of the thirties of the last century.
Although the IMF was seeing a partial recovery in 2021, Georgiyeva stressed that there is a lot of uncertainty about the outlook.
The head of the International Monetary Fund added that expectations are bad for developed and developing countries alike.
It warned that emerging markets and low-income countries across Africa, Latin America, and most of Asia were at high risk.
“With fewer resources initially, they are seriously exposed to ongoing supply and demand shocks, severe tightening of financial conditions, and some may face an unsustainable debt burden,” she said.
The United Nations Economic and Social Commission for Western Asia (ESCWA), at the beginning of this April, expected the increase of the number of Arab poor who will join the poverty lists due to the economic effects that the spread of the Corona virus will have on the world, to more than 8 million Arabs.
In a study published by Corona Virus – Reducing the impact of the epidemic on poverty and food insecurity in the Arab region, ESCWA said: “The number of poor people will increase in the Arab region after an additional 8.3 million people become poor, due to the spread of the Corona virus.
And there are warnings that the global economy will experience the largest decline in growth since the 2009 financial crisis, according to the Organization for Economic Co-operation and Development (OECD).