Analysts point out that in the near future the looming and grave threat of Coronavirus will cripple and largely bound to hit a few of the biggest economies globally specifically Europe, Asia and thereby paving a pathway for the global economic recession that seemingly looks inevitable.
With the deadly Pandemic Coronavirus which continues to create panic and wreak havoc amongst more than 100 nations worldwide, it’s quite obvious and inevitable that there will be an economic slowdown that would soon engulf the world this year.
This announcement, as well as a series of warnings that are almost circulating around the nook and corner, comes after an array of the travel restrictions, flight and event cancellations, lockdowns and school closures globally that have already cast its loom by jolting hard businesses and stock markets, and oil prices fall amidst the ongoing price war between two of the world’s major oil producers.
Nigel Green, chief executive and founder of deVere Group, a financial advisory firm stated that “such is the impact of the deadly pandemic that it’s almost inevitable and obvious that there will be a global recession this year as he validates his statement by adding a point to his statement that all the major stock markets are getting hammered down constantly as the oil prices plunge following the breakdown of Saudi Arabia’s oil-cutting alliance with Russia over the weekend, while the entire powerhouse cities in Asia and Europe are almost shut down.”
He also further added that “both supply and consumer demand are already being impacted in pivotal sectors and pillars of global GDP including travel and tourism, hospitality, manufacturing and retail which is also going in its berserk pace to jolt other industries.”
Mr. Green also stated that “such is the impact set by the deadly pandemic that “the number of coronavirus infections has now reached more than 1,18,000 cases globally and the death toll mounting in excess of 4,300, thereby leaving with the majority of the Multinational companies to either shut down or switch bases by warning their workforce being forced to run a business from their homes and avoid traveling thus losing a major chunk of their profits.”
The deadly pandemic has gripped panic and fears not just amongst Asian economies, but now have gripped even as far as Italy, which has become the 2nd worst hit nation outside Asia that has also stranded millions and put their economy on lockdown as in case of China. Governments across the length and breadth of the world are desperately figuring measures for curbing the spread of the deadly pandemic, however, all efforts being in vain.
Surging ahead as the upcoming day progresses: –
As stated by Jameel Ahmad, global head of currency strategy and market research at FXTM, “the untimely risk of an inevitable and obvious that the global recession is growing by the day as fears over the coronavirus cases being intensified and with new cases being reported every other day is rising true concerns. Although he further added that Initially, he expected that the global economy would narrowly miss this impending recession based on the majority of the virus spread confined only to China and although that was already huge concern to consider, the penetration of the pandemic virus bought to Europe, as well as breaching United States, India, Middle East over the past two weeks significantly raises the flag that this can end in a world recession.”
As per Raghu Mandagolathur, senior vice president for research at Kuwait Financial Centre, the likelihood of a global recession increases as more territories and the huge population gets added up and affected.
What’s in store for GCC Economies?
Jameel Ahamad further added that “If a global recession is so inevitable, then no country including the Gulf Cooperation Council (GCC) regions would be left untouched and that due to the geographic positioning of the UAE and the number of events held in the GCC, it is obvious that the expected growth will diminish to an all-new low and it will also cast its shadow on the investments both native as well as from cross-border.” Ahmad also sounded both optimistic with a certain level of pessimistic tone as he voiced out “that may be in the coming time period, the cure to curb the deadly pandemic will be found out thus, raising a glimmer of hope of the recession becoming a short term period, and not, however, unlike the scars from the global crisis that are still left from some twelve years ago.”