Global Recession In 2020 Now Seen As Guaranteed

A customer pushes her trolley next to empty shelves at a Sainsbury's store in Harpenden as the spread of the coronavirus disease continues, in Harpenden, Britain. REUTERS/Peter Cziborra

SCMP: Coronavirus: global recession in 2020 now seen as guaranteed as outbreak ravages Europe, US

* Hope for rapid global economic recovery has faded, with some analysts predicting the downturn may last until next year
* Escalation of containment measures in Europe and the US, along with weak Chinese economic data, are seen as tipping points in the outlook for the economy

A global economic recession is now all but guaranteed in 2020, with analysts worldwide continuing to slash their already grim forecasts as the rapid spread of the coronavirus pandemic outside China results in unprecedented containment measures and a rising number of businesses in danger of bankruptcy.

The moves by central banks around the world to cut their interest rates to record lows and by governments to pump huge amounts of money into their economies – including the new proposal in the United States to spend around US$1 trillion to bail out troubled businesses and provide a cash handout to every American – have come too late, according to analysts.

The question now becomes how deep the downturn will be, and how long it will last, with worst-case scenarios seeing weak growth continuing into 2021.

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WNU Editor: It all comes down to how long will this pandemic last, and its impact on those who are most vulnerable to it. With almost every infectious disease expert now saying that this will probably last 18 months, I shudder to see how most businesses will survive. We are not facing a recession. We are facing the possibility of a 2 -3 year depression where many people will not be able to work because of the risks of being infected.

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