While Coronavirus continues to spread all over the globe, the predictions for global economic growth continue to foresee a decrease. In case you are not aware of how strong is the progress of the disease, i.e. the number of victims and people infected, we can give that information to you beforehand. The current results of the COVID-19 outbreak are the following: 89,843 subjects were infected by the disease. However, 45,636 of them got to recover from it. Unfortunately, 3,069 people already died.
In our last blog posts, we discussed the impacts of Coronavirus in the economy. At the very beginning of the epidemic, some countries were positive about the situation’s aftermath. They did not believe that it would affect their economy or the global economy with the strength we can predict today. It is the case of Wilbur Ross, Trump’s secretary of commerce. According to him, the spreading of the disease in China would help Americans to get more jobs. Today we see that he was wrong. Coronavirus is not helping anyone.
3 Predictions for global economic growth
That being said, we can report 3 of the main predictions for the global economy. We are talking about a generalized recession, problems for post-Brexit trade deals and an even weaker global growth. Below, check them out in detail!
The predictions for global economic growth is a recession. The aggravation in the coronavirus outbreak has the potential to cut global economic growth in half. Besides, it can plunge several countries into recession this year. We already know that Italy and Germany are not growing that much, for instance.
Failure for Post-Brexit trade talks
The recent separation between Britain and the European Union may be affected by Coronavirus as well. Actually, it has the potential to jeopardize the UK’s post-Brexit trade talks with the EU. Because of that, Brexit voters might not have the economic scenario they were hoping for so soon.
Weak global growth
Lastly, the predictions for global economic growth also indicate that global economic growth will fall down. It was not that strong already, though. Before the outbreak of the disease, the global GDP was already low as 2.9%. Currently, predictors say that global growth will fall down to 1.5%. Having this in mind, the most important thing is to follow security recommendations. Thus, make an effort to stay safe and also keep reading Finances Credit.
Source: The Guardian