Coronavirus COVID-19 Causes a Global Crisis
According to experts, the global economy expects a powerful economic crisis since the one of 2009, caused by the outbreak of coronavirus COVID-19.
If the spread of the coronavirus throughout the world continues, the global economic growth will slow down by half, which in turn will cause the worst financial crisis in the last 11 years, the Organization for Economic Cooperation and Development experts said.
According to the organization, global production growth will decline from 2.9% previously projected for 2020 to just 1.5%, since the largest production capacities are placed in Asia, where the coronavirus is most widely distributed, as well as in North America and in Europe.
Experts believe that it is necessary to take measures to prevent the most negative scenario now. The governments of different countries around the world should coordinate their actions in order to mitigate the economic consequences of the epidemic and stop its further spread.
In total, almost 90,000 people have been infected with the coronavirus in the world, and more than 3,000 people have become its victims. Already two deaths from the virus were registered in the USA, 26 deaths in South Korea, but COVID-19 received the greatest distribution in China, which is the world's largest producer of a wide variety of products, so even with the low spread of the infectious disease in other countries, global economic growth is still slows down a lot.
Trade wars between the U.S. and China
Trade wars between the U.S. and China in 2019 have already had a negative impact on the global economy. A system weakened in this way may not withstand the pressure exerted by the coronavirus epidemic. Therefore, it is necessary for politicians to ensure, first of all, the cessation of the epidemic spread, as well as the maintenance of consumption in their domestic markets, both by consumers and companies.