According to the Global Financial Stability Report by the International Monetary Fund for the month of April 2020; “The coronavirus (COVID-19) pandemic poses unprecedented health, economic, and financial stability challenges. Following the COVID-19 outbreak, the prices of risk assets collapsed and market volatility spiked, while expectations of widespread defaults led to a surge in borrowing costs. ”
In addition, on the World Economic Outlook Report, The IMF stated that “the COVID-19 pandemic is inflicting high and rising human costs worldwide, and the necessary protection measures are severely impacting economic activity. As a result of the pandemic, the global economy is projected to contract sharply by –3 percent in 2020, much worse than during the 2008–09 financial crisis.”
The effects of the coronavirus (COVID-19) is being felt way beyond the 140,000 Americans who are said to be infected. Quarantines for infected and lockdowns for the “non essential workers” are paralyzing the economy with unbelievable speed and force. As at least 3.28 million Americans loose their jobs, the highest numbers ever recorded. The stock market took a huge hit from its peak last month, wiping out three years of gains. As the economy is headed into a recession, how long will the closing of our economy last?
Categories: Global Economy