World has entered recession, says IMF

News Network
March 28, 2020

Washington, Mar 28: The world is in the face of a devastating impact due to the coronavirus pandemic and has clearly entered a recession, the International Monetary Fund said on Friday, but projected a recovery next year.

"We have reassessed the prospects for growth for 2020 and 2021. It is now clear that we have entered a recession as bad or worse than in 2009. We do project recovery in 2021," IMF Managing Director Kristalina Georgieva told reporters at a news conference.

Georgieva was addressing the press after a meeting of governing body of the IMF, the International Monetary and Financial Committee. Representing 189 members, the body met virtually to discuss the unprecedented challenge posed to the world by COVID-19.

The key to recovery in 2021, she said, is only if the international community succeeds in containing the virus everywhere and prevent liquidity problems from becoming a solvency issue.

"The US is in recession, as is the rest of the advanced economies of the world. And in a big chunk of developed and emerging markets in developing economies. How severe? We are working now on our projections for 2020, Georgieva said in response to a question.

The new projections are expected in the next few weeks.

Stressing that while containment is the main reason for the economy to stand still and get into a recession, she said containment is very necessary to come out of this period and step in to recovery. "Until the virus is not contained, it would be very difficult to go to the lives we love."

"A key concern about a long-lasting impact of the sudden stop of the world economy is the risk of a wave of bankruptcies and layoffs that not only can undermine the recovery. But can erode the fabric of our societies," the IMF chief said.

To avoid this from happening, many countries have taken far-reaching measures to address the health crisis and to cushion its impact on the economy, both on the monetary and on the fiscal side, she said.

The IMF chief said 81 emergency financing requests, including 50 from lower-income countries, have been received. She said current estimate for the overall financial needs of emerging markets is 2.5 trillion dollars.

"We believe this is on the lower end. We do know that their own reserves and domestic resources will not be sufficient," she added.

The G-20, a day earlier, reported fiscal measures totalling some 5 trillion dollars or over 6 per cent of the global GDP.

Responding to another question, Georgieva said the IMF is projecting recession for 2020.

"We do expect it to be quite deep and we are very much urging countries to step up containment measures aggressively so we can shorten the duration of this period of time when the economy is in standstill," she said.

"And also to apply well-targeted measures, primarily focusing on the health system to absorb that enormous stress that comes from coronavirus. And on people, businesses and the financial system, I am very pleased to say that when we went through countries' responses, that sense of targeted fiscal measures is there and are also very impressive to see the size of these measures," she added.

"Countries are doing all they can on the fiscal and on the monetary front. We have heard from our members' very impressive decisions taken over the last days," the IMF chief said.

"We also want to caution that as we are responding now, we want to make the recession as possibly short and not too deep. We also want to think about what is going to follow the recovery and make sure that we are putting forward measures that can be supportive in this regard," she said.

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News Network
April 27,2024

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"I always wanted to be in a bar fight," said a US police official after pinning a Black man down on the ground and kneeling on his neck. The man later died at a hospital.

Ohio Police have come under intense scrutiny following the release of body camera footage showing officers pinning a Black man to the ground in a bar, reminiscent of the events that led to George Floyd's death in 2020.

The video, released by the Canton Police Department, captured the moments leading up to the death of Frank Tyson, a 53-year-old man suspected of leaving the scene of a single-car accident on April 18.

In the footage, officers are seen confronting Tyson inside a bar, where an altercation quickly ensues. Despite Tyson's pleas for help and his repeated cries of "I can't breathe," officers wrestle him to the ground and handcuff him, with one officer applying pressure to his back near his neck while saying, "You're fine." 

Tyson continues to plead for relief while lying on the floor. After several minutes, officers notice his lack of responsiveness and proceed to administer CPR. Paramedics arrive on the scene and transport Tyson to a local hospital, where he later dies.

In the body cam footage, one police officer can be heard bragging about how he always wanted to be in a "bar fight" with one of the patrons of the establishment. 

The circumstances surrounding Tyson's death draw chilling parallels to George Floyd's fatal encounter with Minneapolis Police in 2020 which sparked global outrage. 

The officers involved in Tyson's case, identified as Beau Schoenegge and Camden Burch, have been placed on administrative leave pending an investigation by the Ohio Bureau of Criminal Investigation. 

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News Network
April 28,2024

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Students in Paris blocked access to a campus building at a French university on Friday, as pro-Palestine demonstrations reach Europe.

The students occupied the central campus building of the Paris Institute of Political Studies, known as Sciences Po, and dozens of others blocked its entrance, echoing protest action at American universities.

Students inspired by Gaza solidarity encampments at campuses in the United States blocked access to a campus building at the prestigious French university on Friday.

They blocked the entrance with trash cans, wooden platforms and other items.

The occupation of the Paris university campus came after police broke up a separate protest at the university’s amphitheater outside one of its Paris campuses.

Scores of student protesters gathered at the building’s windows, chanting slogans and holding placards reading “We are all Palestinians,” in defiance of administrators who students say called the police on their peers two days earlier.

Pro-Palestinian student protesters had occupied the amphitheater outside one of the university’s Paris campuses on Wednesday evening.

The US-style student protests, which began over the months-long Israeli regime’s genocidal war against Palestinians in the besieged Gaza Strip, kicked off in the United States and have now spread to European capitals as well as Australia.

In the German capital Berlin, several people were arrested as police violently cleared a camp of Gaza war protesters at the German parliament.

Pro-Palestinian activists are demanding a permanent ceasefire, an end to the Israeli atrocities, and an arms embargo of the Tel Aviv regime.

The Israeli regime launched the war on Gaza on October 7 last year. The genocidal war has killed more than 34,356 Palestinians, most of them women and children.

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News Network
April 29,2024

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At least 900 protesters have been arrested since the launch of pro-Palestinian demonstrations on university campuses across the US, where students are raging against the Israeli regime’s US-backed genocidal war on Gaza.

The Washington Post reported the tally on Sunday, the 10th straight day of the protests that began after Columbia University set up an encampment to demand cessation of the war and press the school to divest from Israeli financial interests.

The crackdown then started when university authorities called in the police, a move that sparked more than 100 arrests on the university’s Manhattan campus.

Two other highlights in the crackdown saw police forces rounding up roughly the same number of people at New York University and Emerson College in Boston.

Protests have also erupted across numerous other seats of learning, including Brown University in Providence, Rhode Island, the University of Michigan in Ann Arbor, Massachusetts Institute of Technology in Cambridge, and California State Polytechnic in Humboldt.

The ensuing countrywide counter-campaign of suppression has seen law enforcement resorting to riot control methods against the protesters.

The methods have featured “the same tools and tactics” that were deployed to confront the thousands-strong protests that sparked across the country after a Minneapolis police officer killed George Floyd four years ago, the daily reported.

“At Emory University last week, Atlanta police said officers used ‘chemical irritants’ to clear an encampment, and a Georgia State Patrol officer was captured on video using a stun gun to subdue a man on the ground,” it said.

Academics have, meanwhile, been banding together throughout the US under the banner of Faculty and Staff for Justice in Palestine (FSJP).

Earlier in April, the FSJP’s Georgia chapter called on Morehouse College in Atlanta, which invited Joe Biden as its 2024 commencement speaker, to rescind its invitation as a means of objecting to the president’s role in enabling the Israeli genocide.

At Biden’s behest, the United States has been providing the Israeli war with unreserved military and intelligence support.

The US has also vetoed several United Nations Security Council resolutions calling for an immediate ceasefire in the brutal military onslaught that has so far claimed the lives of at least 34,454 Gazans, mostly women and children.

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