How will the global economy recover from coronavirus pandemic 2020 ?

Milind Selote

I am writing this article to talk about the How will the global economy  recover from coronavirus pandemic? The economy stock markets around the world have been pounded older prices which have fallen off the cliff in just one week 3.3 million.

Covid19 may trigger global recession in 2020

Because of covid 19 entire globe is under disastrous circumstances.Not by only health but by wealth,powerty,unstability,freedomlessness,peace of mind etc. Hence it is a question How will the global economy recover from coronavirus pandemic?

Here we discuss since a month how this coronavirus withdraw very badly our economy in the form of  label LOCKDOWN.so, I am writing about How will the global economy ever recover from the

coronavirus?

Americans apply for unemployment almost 5 times the record a week later another 6.6 million .

They had to make the impossible decision to lay off 98 percent of their work force this morning as covid 19 spreads.

 Global economy

The global economy is shutting down and it's unlike anything they've ever seen

a recession at least as bad as during the global financial crisis or worse but

what makes this collapse different. what will it take to recover and are they headed for a depression ?

When it comes to the economy they 've really never been here before

not like this even though they have lived through some huge economic shocks.

There was the Great Depression that started in 1929 and lasted a decade back in 2001

the 9/11 attacks also badly damaged the economy and of course the airline

industry the 2007 subprime mortgage crisis in the u.s. led to a global

financial crisis and triggered the Great Recession.

the longest in US history some countries still haven't recovered and now there's a pandemic.

the swiftness and severity of the shock to the global economy that is absolutely unprecedented.

this financial crisis is both different and worse because first and foremost

it's a health crisis so economists know they can't just fix the economy. that's like trying to fix their house while it's still on fire.

If they don't try to control the spread of the virus then the suffering would be much bigger.let's take another look at the graph from our last view  it shows a steep spike in

the number of cases if they don't containcovid 19 and the pressure that puts on

hospitals.

so countries right now are trying to flatten that curve by locking down and enforcing social distancing but that has consequences.

the more aggressively, they try to slow the spread and save lives.

the deeper the recession, so the irony is that to save the economy. They have to shut it down first,

that's why economists expect a serious recession maybe even a depression which

goes on for longer and is more severe.

Well, matters are more than avoiding an all-out depression is protecting people's house.

particularly protecting the most vulnerable and so doing whatever they can to address the health

impacts of the crisis for a lot of people.

This is going to be painful for some. It already is on the lookout to speak to people who are really worried about their livelihoods, because of the lockdowns. nearly every sector of the economy is

getting hit right now but service jobs are most at risk.

They require face time with customers and everyone's being told to stay home.

Look at India where 1.3 billion people are under lockdown, 80% of the workforce

are self employed or earn a daily wage 120 million of them are migrant workers,

many have now lost their jobs in the cities.

In South Africa, soldiers are on patrol to make sure 57 million people stay home.

the unemployment rate there before .  Almost half of South Africans who were poor, the reality is that They  know if they don't go and work and it could mean the difference between a meal or not so how can you even get your head around that kind of global unemployment and economic

stagnation.

How will the global economy  recover from coronavirus pandemic ? 

You might be familiar with the law of supply and demand, well the coronavirus has managed to take out both. First there was a supply shock as factories, businesses and borders closed that triggered a demand shock, because industries don't need raw materials if they aren't producing and the lockdowns mean people aren't buying things or can't afford to because

they're not earning money.

Look at China which in today's globalized economy is the factory to the world the coronavirus outbreak virtually shut it down. it's productions dropped by 25% over the last three months that is a big shock to the world economy.

Economy forecast update mar/2020 for coronavirus

China is also a massive buyer on the international market. things like raw materials ,all kinds of cars and agricultural products,so that's also had an effect the biggest concern in China.

China was already heading for minus 1% projection on GDP this year and once the China is getting out of its own health crisis.

,

In Europe, their biggest market isn't getting into theirs which basically means that they are seeing a huge demand contraction in the international trade as the virus began to spread.

Those supply and demand shocks spread to other countries too ,then the markets started to panic stock indexes in New York ,London, Tokyo.

All had devastating sessions several times over in the US.

The Dow lost almost 3,000 points in just one day. The most ever so, how do we fix all this again ?   Economists say they need to deal with the pandemic first, but there are things that both central banks and governments are doing to ease some of the pain.

The job of a central bank is to make sure that there's a steady supply of money flowing through the global financial system and in a time of crisis. They also make sure the credit markets. 

Don't freeze up so central banks around the world have pumped trillion,.s of dollars into the

banking system to make sure banks and businesses can bounce back.

When this is all over, they've also cut interest rates to make loans even cheaper the central bank in the United States.

The Federal Reserve System has done something else too It's made sure other central banks around the world can borrow enough US dollars.

It's the currency the world runs, on u.s. dollars are to businesses what toilet paper is to households?

They don't want to run out of US Dollars before this crisis is passed but central bank

heroics alone enough governments need to step up to world. Leaders have pledged hundreds of billions of dollars to help people, businesses and the health Sector battle.

This crisis the British government, for example put forward four hundred and thirty five billion dollars of the United Kingdom GDP to try to get them through this crisis, because it is a

method of life for this in the US.

The federal government came up with a 2.2 trillion dollar relief package that's about ten percent of its GDP the largest in American history. This will deliver urgently needed relief to

Their nation's families workers and businesses, but not everyone has

convinced those rescue packages going to be enough.

Dr.Doom Nouriel Roubini ,the Economist who called the 2008 financial crisis two years before it

Happened. He's definitely not convinced.

 In fact, he's warning that containment measures had not been sufficient enough and that the fiscal stimulus package is neither large enough nor is it been enacted swiftly enough to seriously

mitigate the risks not just of a recession.

Everybody agrees that's going to happen but to mitigate the risks of possibly a depression but other countries just don't have that kind of cash especially; if they're struggling

economically or dealing with conflict famine even other diseases.

The UN forecasts that income losses in developing countries because of the

coronavirus ,could exceed 200 and 20 billion dollars. The economies that will have the toughest time crawling out of it are really the poorest nations because they were in the worst position going into the crisis and they will have the hardest time shaking off the negative

effects of it .

Economists are bracing for things to get worse in the short term but they also see this as an opportunity to fix what was broken they have a saying never let a good crisis go to waste they do also have to think about Sustainability, about the sustainability of our planet

that's about the health and integrity of our ecosystems.

Do they have a resilient economy?

Do they have a resilient health system ?

Do they have food production systems?

Can they be sure that when a crisis like this happens and hits the economy?

They are able to go on feeding people and keeping people healthy to stop a descent into

social instability which can very often follow from a deep and protracted

depression.

Those are big questions for world leaders to answer for right now ,many of them, economists included are looking to them to make some tough decisions to fight this pandemic and relieve the pain.

A lot of people are already hurting ,They don't know when they'll be back on the start .
Thank you.

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