3 min read
By this point, the coronavirus has massively shaken world populations, governments, and economies. A lot of people just thought it would die out and it has not, In an effort to manage the pandemic, many governments have chosen to enforce lockdowns. As a result, for trade and our economic system, the future looks bleak. Furthermore, we are heading towards a bear market which will be the first bear market since the 2011 housing market crash. In short, all security in the stock market will fall by at least 20%. This will occur in not one, but every market, indicating the significance of the situation.
Many world leaders are attempting to help control and manage the outbreak. In America Trump has handed out small business loans in an attempt to boost the economy. Although I’m no supporter of Trump, his economic relief actions interest me. So far, he seems to be one of the only world leaders to have addressed the economic issues stemming from the pandemic, his approach involves cutting payroll tax and providing small business loans.
Italy, which has been hit the hardest in Europe by the outbreak, faces a much more dire situation. Their economy is completely stagnating. Their large tourism sector is completely crippled by the lockdown and travel ban. In addition, people with insecure labour contracts and self-employed small business owners will have no income. As a result, even when the quarantine breaks there will still be little money to spend and the economy will be slow to recover.
The coronaviruses will have a much larger effect on our society than what meets the eye, how will we as a globalized world react and recover?
https://www.capitaleconomics.com/the-economic-effects-of-the-coronavirus/#uk
https://www.ft.com/content/d0565f72-5fcf-11ea-b0ab-339c2307bcd4
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