Coronavirus pandemic creates global economic shock!
The number of people dying and the number of people getting infected because of the Coronavirus disease, is on the rise, with each passing minute.
John M Barry, historian who studied the Spanish flu pandemic said:
“It’s been disappointing in many countries – too many. In some countries, it’s been outright reprehensible – some leaders’ actions will unnecessarily kill many of their citizens.”
All over the globe, countries are now faced with gargantuan economic damage, the likes of which has not been seen in decades.
In the year 2020, the global GDP, is expected to contract by around 5.2%. Already, all over the globe, there are great many companies and industries that have been hit very badly by COVID-19 and many companies have even shut shop. All over the world, supply chains have been very badly hit due to COVID-19 and the world now really is in a global economic shock!
Oxford Economics, Head, Global Macro Research, Ben May, says:
“From an economic perspective, the key issue is not just the number of cases of COVID-19, but the level of disruption to economies from containment measures.”
All over the world, due to the Novel Coronavirus, a number of banks and big organizations have cut their global economy forecasts. The Organization for Economic Co-operation (OECD) and Development, was one of the organizations which did this. In a March 2020 report which it published, the organization declared that it had downgraded growth forecasts, for the year 2020, for almost every economy in the globe.
It is for sure that because of the Coronavirus outbreak which began in Wuhan, China, in late December 2019, the world has now been plunged into a recession.
“Debt relief is the key issue…if the weakest link in the chain is not supported effectively, we will all be damaged.” – Sigrid Kaag, Netherland’s Minister for Foreign Trade and Development Cooperation.
Truly, we are now staring in the face of a global economic shock!