The global crisis right now has been sparked by the mass spread of Coronavirus, which first came about in China. It wasn’t until January that the virus started gathering much attention from the markets.
It was reported that China had kept the virus hush hush in December, where it was already spreading across the country. Once Coronavirus started making its way across the Asian region, in big economies such as South Korea and Japan, panic started to kick in
Then Europe, with big economies such as; Italy, Spain suffering this most, cases fast rising in the UK, Germany and France. Across the pond, the world’s largest economy, the United States of America, is now being forced to undergo lockdown.
The pandemic is real and is hurting markets massively. Central banks are being forced to act to try and cushion some of the blow. Interest rates are being cut, money is being pumped into the markets and governments are proving fiscal stimulus.
There are clearly efforts to protect us as consumers, however, this is still well within its infancy and no one knows yet the extent of the incoming damage. A global recession is without a shadow of a doubt a strong possibility.