GLOBAL RECESSION DUE TO CORONAVIRUS.
                     GLOBAL RECESSION DUE TO 
CORONAVIRUS
INTRODUCTION
• Corona virus disease (COVID-19) is an infectious disease caused by 
a new virus named as SARS-CoV-2.
• The disease causes respiratory illness with symptoms such as a 
cough, fever, and in more severe cases, difficulty breathing.
• It spreads primarily through contact with an infected person when 
they cough or sneeze. 
COVID-19 STATUS IN THE WORLD
• Total COVID-19 cases in the world has reached to 2.4 million 
with highest cases in USA(767190).
• Apart from USA , Spain, Italy, France and Germany has effected 
very badly.
COVID-19 STATUS IN INDIA
• In India confirmed cases of  COVID-19 has reached to 17487 with 
around 14202 active cases.
• Total recovered cases has reached to 1359 with number of death 
393.
GLOBAL RECESSION
• Covid-19 as it spread across China, global financial markets 
reacted strongly.
• when the virus spread to Europe and the Middle East, stoking 
fears of a global pandemic.
WHAT MARKETS ARE TELLING
• Global financial markets might seem to indicate that the world 
economy is on a path to recession. 
• Valuations of safe assets have spiked sharply, As a result, 
mechanical models of recession risk have ticked higher.
COVID-19-INDUCED RECESSION 
• Real recession: 
– This is a CapEx boom cycle that turns to bust and derails the 
expansion.
– It’s here that Covid-19 has the greatest chance to infect its 
host.
COVID-19-INDUCED RECESSION 
• Policy recession : 
– Central banks leave policy rates too high relative to the 
economy’s “neutral” rate.
– Federal Reserve has delivered a surprise cut of 50 basis 
points. 
– Outside of the monetary policy response, the G7 finance 
ministers have also pledged fiscal support.
COVID-19-INDUCED RECESSION 
• Financial crisis : 
– Financial crisis risks are difficult to point to. Some 
commentators point to the bubble in corporate credit, as seen 
in significant issuance and tight spreads.
– It’s difficult to see Covid-19 contributing to financial 
imbalances, but stress could arise from cash flow strains, 
particular in small and medium enterprises (SMEs).
WHAT SHOULD LEADERS DO IN RELATION TO ECONOMIC RISKS?
• Don’t become dependent on projections. 
• Focus on consumer confidence signals.
• Plan for the best and prepare for the worst trajectories.
• Begin to look past the crisis. 
THANK YOU