With almost the whole world affected by the novel Corona virus (COVID-19), we are seeing a huge drop in the financial market. The ferocious pandemic was declared by the WHO is causing country-wide lockdowns that have already begun taking their toll on the stock market and the economies of the affected countries. And the question of whether the global economy will tip into recession stands strong.
Notable Economist has stated that a global recession is “unfortunately very, very likely.” As malls, shops, restaurants, factories, and airlines are shutting shut down around the world while various countries are closing their borders, many economists have also warned that the global recession is a not threat anymore, it is already happening.
Here’s an overview of the world-wide effects that the Corona pandemic is having:
As far as figures are concerned, while retail sales in China dropped down 20.5% during January and February compared to 2019, their industrial output is down by 13.5%, the sharpest contraction recorded. According to the National Bureau of Statistics,fixed asset investment fell by almost25%.
Goldman Sachs has ascertained a downgraded outlook on America’s economy,saying that it will shrink 5% between April and June, after seeing 0% growth between January and March. Growth for the whole year’s forecast brings the economydown at a mere 0.4%, down from 1.2%.Economists at ING said that the US economy isexpected to shrink 8% in the second quarter of the year, getting on par with the drop experienced during the 2008 financial crisis.
These 3 fundamental points show the immense effect that the Corona virus has had on not just the health of people but the health of the country as well. Only time will tell what the future holds. Until then, the only way is to protect ourselves is to take the precautionary measures as only a healthy population will lead to a healthy economy.
Amilia Brown is a seasoned business writer & strategist who simplifies complex business concepts and turn them into engaging narratives. As a trusted business writer, she delivers actionable insights with precision.