Chinese Coronavirus: Global economy to witness worst fallout

The Great Depression was the worst worldwide economic downturn that lasted for 10 years from 1929, beginning in the US when the New York Stock Exchange on Wall Street crashed and wiped out millions of investors. The IMF chief said that given the necessary containment measures to slow the spread of the virus, the world economy is taking a substantial hit.

This is especially true for retail, hospitality, transport, and tourism. In most countries, the majority of workers are either self-employed or employed by small and medium-sized enterprises. These businesses and workers are especially exposed, she added. Of the view that emerging markets and low-income nations -- across Africa, Latin America, and much of Asia are at high risk, Georgieva said with weaker health systems to begin with, many face the dreadful challenge of fighting the virus in densely populated cities and poverty-stricken slums, where social distancing is hardly an option. With fewer resources to begin with, they are dangerously exposed to the ongoing demand and supply shocks, drastic tightening in financial conditions, and some may face an unsustainable debt burden, she said.