INFECTION OF THE ECONOMY D . GOYAL
Here, I discuss the unprecedented implications of the current situation, while trying to answer the question: “What on earth does it all mean?” Over the last few weeks you may have seen scary headlines like, “Morgan Stanley predicts 30% contraction in the global GDP,” or, “Equity markets rout continues to burn investors,” and, “Coronavirus outbreak will kill millions.” Although these are true to an extent, I believe that the worst is yet to come with an inevitable recession that might last years. The tourism industry will be the worst hit as consumer spending will dry up over the next 6 months as confidence in the economy is at all time lows.
Just 3 months ago, the economic climate seemed more certain and more robust than ever before, with Brexit being finalised and the US-China trade disputes being resolved. However, little did we know that, as Trump puts it, the “Chinese Virus” would cripple the world in such a short space of time. 11
