The coronavirus has certainly been a huge focal point in economic news lately, and rightfully so. The early optimism for the economy in 2020 is now virtually wiped away as the pandemic has halted all economic momentum early on in the year. Experts believe that the global economy is completely in survival mode amidst this tremendous economic shock. Travel, trade and supply chains are taking the largest hits worldwide rather quickly. Just last week the U.S. stock markets had one of their worst days ever as now a major sell off is fully underway.
Knowing the financial markets are sensitive to swings like this, do you think this latest swing is out of line given basic economic theory, or is the coronavirus on a trajectory to make 2020 a terrible year for the global economy?
2 comments:
https://www.nytimes.com/2020/03/01/opinion/coronavirus-economy-recession.html
I think recent news of the virus has really shifted gears, and opinion towards economic performance in 2020. Optimism is slowly fading since the virus is picking up speed, not to mention its geographic impact expanding so rapidly. I think since the virus is severely impacting industries like oil and gas, travel, and healthcare, it can definitely be said that the global economy will face a rough year in the first quarter. It is uncertain what the remaining months of 2020 look like, but it hasn't been a great start.
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