Friday, 13 March 2020 13:27

The threat of world recession due to Corona-virus

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When the Corona-virus was first discovered in Wuhan, China, and the country had to isolate, and close the way in and out of Wuhan, the world community had begun to imagine the economic impact that would occur. The threat of recession is predicted to happen not only in China, but also in other countries. This is even more apparent when a virus attack begins to cross and attack several other countries. Italy and South Korea are two countries that also experience the worst effects of corona virus attacks outside China. In fact, Italy must also impose lock down, or close access in and out, just like Wuhan. Another country which has also been declared a heavy attack is Iran. Some of the country's top officials are even declared to have contracted the dangerous virus. Around 100 countries are reported to suffer from the corona-virus attack with quite a number of victims exposed.

Economists were forced to make corrections to their predictions of the global economy. How serious is the impact of the spread of the virus on economic growth? Most believe there is a contraction in the first and second quarter of this year. The peak economic impact is predicted to be still within a few months. Yet with the current conditions, world economists have seen the recession begin to occur in Japan and Italy. Even, Europe as a whole will be hit economically. The longer this pandemic lasts, with dramatic efforts to overcome it, the greater the effect is on the global economy.

China is the hardest-hit country by this outbreak. Throughout February, the country's activities were disrupted and experienced its first economic contraction since the 1970s. Now, the number of corona-virus cases globally has risen above 100,000, and the governments of other countries outside China have announced more restrictions. Economists begin to consider more severe pressures on the global economy. It is estimated that the growth will experience a big surprise in the first half of 2020.

The shadow of the global recession that must be faced by world community will depend on whether the medical scientists are able to find the fastest way to overcome the corona-virus attack. Hopefully, an anti-virus vaccine will soon be discovered in addition to a healthy lifestyle that is expected to slow the spread of the corona-virus.

Read 188 times Last modified on Saturday, 14 March 2020 11:32