Global Recession News.
                     Global Recession News
Global recession soon
• Economists are bracing themselves for a deep global recession as 
official data showed that the world’s largest economy contracted by 
4.8 per cent in the first three months of the year. This was worse 
than the 4 per cent forecast by analysts. The American economy 
shrank at its fastest pace since the 2008 financial crisis as the 
coronavirus pandemic brought activity to a standstill.
Source: Google Images
Long-lasting recession
• Now, fears are growing that the downturn could be far more 
punishing and long lasting than initially feared, potentially enduring 
into next year, and even beyond as governments intensify 
restrictions on business to halt the spread of the pandemic, and as 
fear of the virus reconfigures the very concept of public space, 
impeding consumer-led economic growth.
Source: Google Images
The COVID-19 Pandemic
• The pandemic is above all a public health emergency. So long as 
human interaction remains dangerous, business cannot responsibly 
return to normal. People may be less inclined to jam into crowded 
restaurants and concert halls even after the virus is contained. The 
abrupt halt of commercial activity threatens to impose economic 
pain in every region of the world and recovery could take years.
Source: Google Images
Stock markets
• Stock markets have reflected the economic alarm. The S&P 500 in 
the United States fell more than 4% Wednesday as investors braced 
for worse conditions ahead. That followed a brutal March, during 
which a whipsawing S&P 500 fell 12.5%, in its worst month since 
October 2008. Nifty crashed by 30% within a few days.
Source: Google Images
Virus needs to be contained
• Among investors, a hopeful scenario holds currency: The recession 
will be painful but short-lived, giving way to a robust recovery this 
year. The global economy is in a temporary deep freeze, the logic 
goes. Once the virus is contained, enabling people to return to 
offices and shopping malls, life will snap back to normal. Jets will fill 
with families going on merely deferred vacations.
Source: Google Images
Stimulus package
• Trillions of dollars in credit and loan guarantees dispensed by central 
banks and governments in the United States and Europe have 
perhaps cushioned the most developed economies. That may 
prevent large numbers of businesses from failing, say economists, 
while ensuring that workers who lose jobs will be able to stay 
current on their bills.
Source: Google Images
Recession 2020
• A prediction, which can be made with reasonable accuracy, is that 
the global economy will slip into recession in 2020. There are a few 
who fear that this can even lead to a depression. Initial estimates 
suggest the global economy will contract 1 per cent this year. Q2 
contraction would be savage. Last time the global economy 
contracted was in 2008-09.
Source: Google Images
Predictions
• Another possible prediction is that this epidemic will also come to 
an end and the global economy will recover. But when the epidemic 
will end and when will the global economy start to recover is 
difficult to predict, perhaps in two months, perhaps in two quarters. 
The recovery in the markets is likely to be swift and sharp.
Source: Google Images
Loss of jobs
• With millions of people losing their jobs, the income and wealth 
gaps of the 21st-century economy will widen further. To guard 
against future supply-chain shocks, companies in advanced 
economies will re-shore production from low-cost regions to higher-
cost domestic markets, this trend will accelerate the pace of 
automation, putting downward pressure on wages.
Source: Google Images