Global Economic Recession Starts Now Due To Coronavirus
US And Europe Getting Hit After China
Coronavirus or COVID 19 has spread a widespread fear, which has now spread to 114 countries. Restaurants, bars, shops, schools, universities, even airlines, and factories have shut down around the world as the novel coronavirus has infected more than 115,000 individuals around the globe, and the numbers continue to rise. More than six thousand individuals have died due to the virus. Business analysts who were warning about it have arrived as the global economic recession starts now due to coronavirus.
The dreadful economic data which was released by China this Monday exhibited that the country was pounded over multiple time due to the outbreak of the novel coronavirus in the last couple of months. The economy of China is not expected to be fully stabilized in the near future. After the virus’s origin ground was China, the country was temporarily sealed off, and a total lockdown was observed in several provinces. As the imminent spread of the virus is all around the world, the global economic recession starts now due to coronavirus as people are even afraid to touch someone who is present outside of their homes.
Governments of countries around the world are taking drastic measures to try to control and localize the infection as much as possible. The financial markets are in meltdowns as the global economic recession starts now due to coronavirus, which was not foreseeable just even ten days ago.
Dramatic changes can be seen in the statistics of the past week as the number of coronavirus cases is rapidly increasing, and the toll has risen above 176,000 even though the countries around the world are doing everything in their power to prevent further spread of the novel coronavirus. Tens of countries have initiated either whole cities lockdowns, and those countries that would plummet if the lock downed, have enacted curfews or closure of public places by which global economic recession starts now due to coronavirus. These actions, which might look like an overreaction, are necessary to be observed after learning of the magnitude of damage suffered by China.
The fall down of activities had affected every section of China during the first couple of months when the novel coronavirus was discovered. Around 20.5% of retail sales decreased in the first two months of 2020, as compared to last year. Industrial output decreased 13.5%, which was the sharpest decline on the record.
As China is trying to get back on its feet, the global economic recession starts now due to coronavirus after the massive exposure to the people living in the United States and Europe. Italy, which is now declared as the epicenter of the pandemic, has recorded more than 25,000 cases. As the global economic recession starts now due to coronavirus, the investment bank is contemplating that the economy of the US will shrink 5% between the next few months after zero growth from January to March. Public anxiety played a major role in the deterioration of the country’s economy.
As the financial conditions of the consumers have declined in the last few days, the markets are undergoing extreme volatility, which is making it harder for the buyers and sellers alike and ultimately affect the economy of the country. The most hit is on businesses as the condition of the world is making it harder to borrow or loan money.
The United States stock market is down 27% after the outbreak, which has hit its highest record less than a month ago as the global economic recession starts now due to coronavirus. The American Federal Reserve has announced that they would make the taking of US dollars cheaper for the banks around the world by cutting down the interest rate to zero.