Coronavirus Recession Might Overtake Global Recession 2020
It is being witnessed every day how the spread of virus has been affecting every sector around the globe. As a precaution, the lockdown system is implemented across the major cities and countries of the world, this showed dire consequences on financial markets. The International Monetary Fund(IMF) predicts that the economic crisis and Global Recession 2020 will be more severe compared to the past.
The spread of virus hard-hit different industries and financial markets like shares, stocks, commodities, tourism, restaurants.automobile, etc.
Major Industries Affected By Global Recession 2020
Automobile Industry
According to China national bureau statistics, early this year 13.5% fall has been noticed so far in the automobile industry. The lockdown has affected the metal suppliers and dealers massively.
Restaurant Bookings
In several countries, this sector crumbled when compared to 2019.
Commodities
Commodities like gold and crude oil have also seen a massive fall due to COVID-19. The value of gold is plunging like never before.
Crude Oil
Likewise oil price is declined to the least since 2001.
Declined Stock Markets
A report from Bloomberg shows the fall of share markets since the start of virus pandemic
As seen, a major downturn is noticed since the outbreak of the virus in various countries and cities. Compared to the other 2 months there is a massive fall in the month of March as many countries implemented lockdown.
As it is evident that the situation is getting worse over a period of time, the spread of virus has already impacted badly on the global economy. On Monday the IMF chief Kristalina Georgieva joined a conference call along with 20 financial ministers and central bankers stated that it provides financial backup for emerging nations and is” ready to deploy $1 trillion” under an immoderate situation. She further says, this unpredictable economic crisis will continue and be more severe, but there will be recovery if the spread of the virus is controlled faster.
The present unpredictable situation calls for action of being prepared for the next recession. There’s nothing we can do in the present scenario except for following the government’s suggestions of staying safe and then hoping for the good times ahead. Recession is another unpredictable event that can cause huge disturbances in the economy and thus affects every individual in some or the other way. Better be prepared to avoid last-minute panicking.
