Fear of the economic slowdown due to Coronavirus crisis

MF warning; The world should be ready for a big economic decline

APRIL10 (WTN) - The world is suffering the punishment of mistake and negligence of the leftist government of China at the moment. People from more than 200 countries have been affected by Coronavirus infection, which originated and spread from Wuhan city of China. At the time of writing this article, 95,766 people have died across the world due to Coronavirus infection. Many countries of the world have a lockdown to avoid Coronavirus infection. It is clear that the economic activity has been stopped in many countries due to the lockdown.

Given the magnitude of the Coronavirus infection, it is feared that the economic activity will not pick up for at least two months. If this is the case, the whole world may face the biggest decline since the Great Depression of the 1930s. For your information, let us know that the Great Depression is recognized as the worst phase of the world's economy. The Great Depression began in 1929 with the 'collapse' of the New York Stock Exchange on Wall street in the US. The Great Depression had badly affected the whole world for nearly ten years.

Indeed, IMF (International Monetary Fund) believes that the year 2020 is going to be the worst and the biggest challenge for the global economy. IMF Director Cristlina Georgieva fears that per capita income will decline in more than 170 countries of the world in 2020 due to the Coronavirus infection crisis.

If the Chinese leftist government did not hide information about the Coronavirus infection disease, then the whole world would not be in trouble today. Due to the mistake and negligence of the leftist government of China, the world is currently facing a crisis, which it had never seen before. The Coronavirus infection epidemic has severely worsened the economic and social status of many countries. Thousands of people have died due to Coronavirus infection. At the same time, billions of people have been affected by the lockdown.

It is feared that the global growth rate will decline in the year 2020 due to the lockdown. According to the IMF chief, "Only three months ago, we anticipated that per capita income would increase in our 160 member countries by the year 2020. But everything has changed now, and now per capita income is expected to decrease in more than 170 countries."

The retail, hotel, transport, and tourism sectors are particularly affected due to the lockdown. At the same time, there is a greater risk to the economy in emerging markets and low income countries in Africa, Latin America and a large part of Asia. Where the health system is weak, or densely populated, Coronavirus infection is being the most affected by the disease.

It is obvious that due to the lack of resources due to lockdown, the demand-supply balance will first deteriorate in many countries. In addition, the financial situation of many countries will be affected. In addition, the debt burden will increase on the poor and developing countries. According to the IMF, portfolio withdrawals from emerging markets have been around $ 100 billion during the last two months. All these things show that due to Coronavirus crisis, the world should be prepared to face a big recession even before the Great Depression of 1930.