Coronavirus recession

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Coronavirus recession
IMF World Economic Outlook April 2020 Real GDP growth rate (map).svg
Map showing real GDP growth rates in 2020, as projected by the International Monetary Fund
Date20 February 2020 – present
TypeGlobal recession
Cause
Outcome

The coronavirus recession, also known as the Great Lockdown[1] or Great Shutdown,[2] is an ongoing major global economic recession affecting the world economy in early 2020[3][4][5] during the COVID-19 pandemic.[6][7]

Background[change | change source]

The recession has caused the largest economic downturn since the Great Depression.[8] On 14 April 2020, the International Monetary Fund (IMF) reported that all of the G7 nations had already entered or were entering into what was called a "deep recession".[9] The IMF has stated that the economic decline is "far worse" than that of the Great Recession in 2009.[10][11][12][13]

The numbers[change | change source]

The pandemic has led to more than a third of the world's population being placed on lockdown to stop the spread of COVID-19.[14] This has caused severe economic downfalls for economies across the world,[15] following soon after a global economic slowdown during 2019 that saw a lowering numbers in stock markets worldwide.[16][17]

The United Nations (UN) predicted in April 2020 that global unemployment will wipe out 6.7 per cent of working hours globally in the second quarter of 2020—equivalent to 195 million full-time workers.[18]

Other effects[change | change source]

The recession saw the fall of the price of oil caused by the 2020 Russia–Saudi Arabia oil price war, the collapse of the tourism industry, hospitality industry, energy industry and a large decrease in consumer activity.[19][20][21]

Global stock markets crashed around 20 to 30% during late February and March 2020. During the crash, global stock markets had many swings, mainly due to uncertainty in the markets.[22][23][24]

References[change | change source]

  1. "The Great Lockdown: Worst Economic Downturn Since the Great Depression". IMF Blog. Retrieved 16 April 2020.
  2. Wolf, Martin (14 April 2020). "The world economy is now collapsing". Financial Times. Retrieved 15 April 2020.
  3. Islam, Faisal (20 March 2020). "Coronavirus recession not yet a depression". BBC News. Retrieved 16 April 2020.
  4. Hawkins, John. "How will the coronavirus recession compare with the worst in Australia's history?". The Conversation. Retrieved 16 April 2020.
  5. Stewart, Emily (21 March 2020). "The coronavirus recession is already here". Vox. Retrieved 16 April 2020.
  6. Islam, Faisal (20 March 2020). "Coronavirus recession not yet a depression". BBC News. Retrieved 26 March 2020.
  7. "The coronavirus recession has arrived". The Canberra Times. 25 March 2020. Retrieved 26 March 2020.
  8. Elliott, Larry (14 April 2020). "'Great Lockdown' to rival Great Depression with 3% hit to global economy, says IMF". The Guardian. ISSN 0261-3077. Retrieved 15 April 2020.
  9. "The Great Lockdown: Worst Economic Downturn Since the Great Depression". IMF Blog. Retrieved 15 April 2020.
  10. "The Great Recession Was Bad. The 'Great Lockdown' Is Worse". BloombergQuint. Retrieved 15 April 2020.
  11. "IMF Says 'Great Lockdown' Worst Recession Since Depression, Far Worse Than Last Crisis". nysscpa.org. Retrieved 15 April 2020.
  12. Ben Winck (14 April 2020). "IMF economic outlook: 'Great Lockdown' will be worst recession in century". Business Insider. Retrieved 27 April 2020.
  13. Larry Elliott Economics editor. "'Great Lockdown' to rival Great Depression with 3% hit to global economy, says IMF | Business". The Guardian. Retrieved 27 April 2020.
  14. McFall-Johnsen, Juliana Kaplan, Lauren Frias, Morgan (14 March 2020). "A third of the global population is on coronavirus lockdown – here's our constantly updated list of countries and restrictions". Business Insider Australia. Retrieved 15 April 2020.
  15. "World Economic Outlook, April 2020 : The Great Lockdown". IMF. Retrieved 15 April 2020.
  16. Elliott, Larry (8 October 2019). "Nations must unite to halt global economic slowdown, says new IMF head". The Guardian. ISSN 0261-3077. Retrieved 15 April 2020.
  17. Cox, Jeff (21 November 2019). "The worst of the global economic slowdown may be in the past, Goldman says". CNBC. Retrieved 15 April 2020.
  18. "ILO: COVID-19 causes devastating losses in working hours and employment". 7 April 2020. Retrieved 19 April 2020.
  19. Yergin, Daniel (7 April 2020). "The Oil Collapse". ISSN 0015-7120. Retrieved 15 April 2020.
  20. Dan, Avi. "Consumer Attitudes And Behavior Will Change in the Recession, And Persist When It Ends". Forbes. Retrieved 15 April 2020.
  21. "The $1.5 Trillion Global Tourism Industry Faces $450 Billion Collapse in Revenues, Based on Optimistic Assumptions". Wolf Street. 30 March 2020. Retrieved 15 April 2020.
  22. Williams, Sean (10 March 2020). "Stock Market Crash 2020: Everything You Need to Know". The Motley Fool. Retrieved 15 April 2020.
  23. DeCambre, Mark. "Wild stock-market swings are 'emotionally and intellectually wearing' on Wall Street". MarketWatch. Retrieved 15 April 2020.
  24. Samuelson, Robert J. "Opinion | What the Crash of 2020 means". The Washington Post. Retrieved 15 April 2020.