THE CORONAVIRUS AND GLOBAL ECONOMIC RECESSION

Countries Around the World Hit Economically by the Coronavirus

The Bank of England has warned over an economic hit from the coronavirus of close to 30% by summer.  The Bank expects Gross Domestic Product to fall about 3%  in the first three months of 2020 and the plunge by a further 25% in the second quarter.


In its first official outlook on the toll in the UK economy by the COVID-19 pandemic the Bank cautioned a "very sharp" fall in the GDP  a "substantial hike in unemployment".


The Bank also implied that the fall will be temporary and that "activity should pick up" but it would take a long time for the economy to recover.


As we have written before the coronavirus outbreak which was first detected in China. has infected 185 countries.  Its spread has left umpteen businesses around the world in a very difficult economic situation, some were even bankrupt.


Severe concern was expressed that the swift spread of the coronavirus would destroy economic growth and that government actions might not be enough to stop the tragic decline.  In response, central banks in many countries slashed interest rates, which should, theoretically, make borrowing cheaper and boost the economy.  But analysts have warned that "there could be severe volatility until the pandemic is contained."


In the USA the number of people filing for unemployment hit a record high, signalling a decade of recession for one of the world's largest economies.  More than 30 million people in the US have filed for unemployment benefits during the last six weeks.


Also, oil prices crashed as demand has deteriorated as the lockdown across the world have kept people indoors,  The oil prices had already been affected, due to a litigation between OPEC and Russia.  Many advanced countries are expected to enter a recession year, like /Canada, China, France, Germany, Italy, Japan, the UK and the USA, the IMP described the decline as the worst since the Great Depression in the 1930s.



 At these critical times let us admire beautiful pieces of architecture as a distraction.

A Photograph of a Kifissia Villa by Orestis Saferoglou