World faces new 'Great Depression' as virus toll mounts

World powers scrambled on Thursday to build a global response to the human tragedy and once-in-a-century economic collapse caused by the coronavirus epidemic, as death tolls in the US and Europe soared higher.

In a locked-down New York, the UN Security Council was to meet on the pandemic for the first time. And, by video conference, EU finance ministers are wrangling over how to bail out their worst hit members Italy and Spain.

"We anticipate the worst economic fallout since the Great Depression," said IMF chief Kristalina Georgieva, warning that all but a handful of countries will see incomes fall and urging governments to provide "lifelines" to businesses and households alike.

The US Federal Reserve tossed out just such a rescue to Americans, with chairman Jerome Powell announcing financing facilities of USD 2.3 trillion "to provide as much relief and stability as we can during this period of constrained economic activity".

He warned, however, that the US economy is moving "with alarming speed" towards "very high unemployment".

Another 6.6 million US workers filed for unemployment benefits last week, new data showed Thursday, meaning that nearly 17 million workers have lost their jobs since mid-March.

On the spiritual front, Pope Francis was preparing to celebrate Maundy Thursday with The Mass of the Lord's Supper, but he was to be unable to perform the tradition of washing the feet of the faithful in case of infection.

Meanwhile, the number of worldwide cases of the novel coronavirus since it spread from China earlier this year topped 1.5 million, according to an AFP tally. More than 88,981 people have died.

Alongside the personal tragedies and the pressure on overburdened hospitals, there has been a stark economic toll, with the World Trade Organization warning of the "worst recession of our lifetimes."
Christine Lagarde, the head of the European Central Bank, said it was vital the ministers hatch a plan big enough to meet the challenge, warning: "If not all countries are cured, the others will suffer."