The world is experiencing a recession that is ‘way worse’ than the global financial crisis, the International Monetary Fund’s (IMF) has said.
It branded the economic impact of the coronavirus
pandemic a ‘crisis like no other’.
The intervention comes amid increasing financial fears across the globe and a series of concerning economic indicators.
Speaking at a press conference in Geneva on Friday, IMF managing director Kristalina Georgieva said: ‘This is a crisis like no other, never in the history of the IMF have we witnessed the world economy coming to a stand still.’
‘We are now in recession. It is way worse than the global financial crisis.’
Comparing the current crisis to the banking collapse in 2008, Ms Georgieva continued: ‘It is a crisis that requires all of us to come together.
‘WHO is there to protect the health of people, the IMF is there protect the health of world economy.’
In the USA, the unemployment total has hit 10 million after more than 6.5 million people filed for unemployment benefits in just a week.
Britain has seen a similar surge in welfare claimants, with nearly a million people applying for Universal Credit in a fortnight.
It comes as a survey predicted that a third of British firms could furlough between 75% and 100% of staff.
The lockdown has forced businesses to temporarily close amid fears that entire industries could be irreparably damaged.
Chancellor Rishi Sunak has promised the country that the government will do ‘whatever it takes’ to get through the crisis, injecting ‘unprecedented’ sums into the economy in an effort to stop businesses going bust.
Its furlough scheme offers employers the chance to have the government pay staff 80% of their wages, up to £2,500 a month, to stop mass unemployment.
However, there are fears that forthcoming jobs figures will show a major dip in employment regardless.
Stock markets have plunged in response to near-global lockdown, with the FTSE 100 echoing global trends with dramatic losses.