As countries across the world are taking measures to shut down public places, shops, airlines, and factories, economists believe that the threat of global recession is no longer a far-fetched idea, it's actually here. Media reports suggest that the data released by China on March 16 shows the impact coronavirus has done to its finances. Experts believe that the world's second-largest economy is unlikely to recover anytime soon.
Wall Street stocks on Monday recorded its worst day since 1987 as the Dow Jones Industrial Average, a stock market index that measures the performance of 30 biggest companies, fell by 12.9 per cent, which is nearly 3,000 points. Nasdaq and S&P 500 also recorded similar falls which later resulted in the carnage of global markets. According to reports, US President Donald Trump on March 16 for the first time acknowledged that his country 'maybe' heading towards a recession.
The coronavirus pandemic has affected some of the world's wealthiest countries like the United Kingdom, Italy, Germany, France, the United States, and of course China, the earlier hotspot of the disease. After these countries announced measures like border shutdown and banning public gatherings to prevent the spread of the virus, the already deteriorating global economy fell rapidly.
The collapse of activity is affecting every sector from retail to manufacturing to services. According to the National Bureau of Statistics, the retail sales in China plunged 20.5 per cent during January and February compared to 2019, industrial output was down 13.5 per cent, and fixed asset investment fell by nearly 25 per cent.
The COVID-19 has claimed more than 7,100 lives across the world and has infected over 1,82,000 people globally since it first broke out in December 2019. China is the most affected country in the world as experts believe that the virus originated from a seafood market in Wuhan city, the epicentre of the disease, where animals were reportedly being traded illegally.