The world economy is now at risk of the highest economic downturn since the economic crisis of 20 years. As the coronavirus continues to spread, another outbreak of global warming is about to start. School closures have been announced in Japan for a month, public meetings in Switzerland have been banned and flights canceled.
“With the exception of the Black Death in Europe in the fourteenth century, the global economic epidemic has been followed by a recession,’ Professor Robert Dingwall of the University of Nottingham told the news agency AFP. I do not think there is any good reason for which it will not happen this time. ‘
However, long before the global epidemic spread, the International Monetary Fund (IMF) warned that the global economy is in fragile and grave danger. Their further fear is that, if any of these risks were to take place, global economic growth would decline further.
Economists have already warned that the coronavirus can make such a push. Especially in the prevention of Covid-19, it is spreading every day despite the need to take emergency prevention measures. The virus has spread from China’s central to the whole country and to the world. It started from China’s center in December.
Since January, manufacturing factories in China have closed and cities have been blocked. Saudi Arabia banned foreigners from traveling to Mecca Geneva, meanwhile, has canceled the Geneva International Motor Show, the biggest event for the world car industry. The clock fair ‘Baselworld’ was canceled on Friday.
There is a football match in Italy but there are no visitors to the gallery. Meanwhile, the fate of the Olympic Games at the Japanese capital Tokyo next July is still hanging over Corona. Meanwhile, as of Friday, the number of coronary tract deaths worldwide has risen to more than 85,000 and the death toll has reached 2,923.
All eyes are now on the United States. Although coronavirus has not yet been hit in the country, health officials say an epidemic is inevitable. If additional caution is issued in countries in the world’s largest economy, especially for US consumers, it will be a catastrophic blow to global growth.
But while US President Donald Trump blamed the media overreach for the risks, others were appalled by the actual impact of the epidemic. Oxford Economics Group chief economist Gagri Dako says, “If the pestilence is there, the reaction to the world will be severe.”
“This will have very serious negative effects,” he told the news agency AFP. And if that happens, the economy will soon fall into an economic downturn, and the crisis will fuel the financial market panic. Meanwhile, the rate at which Wall Street fell this week was the highest since the global financial crisis in 2008.
In addition to reducing production, school closures or the telecommunications sector have created barriers to work and spending of workers, which account for two-thirds of the US economy. Not only the US but Asia and Europe’s stock markets are unmatched. Although the prospect of a US-China trade agreement gives the world economy momentum, concerns over Corona are now on the rise.
Six people were reported to have been infected in the United States — only three of them had died of the virus without traveling to another country. People are reluctant to shake hands with each other at various conferences in Washington, everyone is watching when someone coughs, and the United States has postponed their travel abroad.
The news agency AFP says that if the US economy shrinks, then the whole world is cool. Meanwhile, because of China, the second world economy, the IMF had already slowed global growth in 2021, but they did so before the epidemic spread to the whole world.
This week, IMF spokesman Gerry Rice told reporters, “There are more things we don’t know. It is spreading very fast. We are still trying to tell about it. The Coin Fund is still deciding on the sub-official meeting of the IMF with the World Bank next spring.
Because thousands of people from all over the world will participate in that meeting, but it is speculated that this may not be the way they have organized the meeting in Washington. Even if the situation is not understood, economists agree on the biggest crisis in the global economy in the last one era.
News Room, Feb 29,2020