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Due to Corona virus, the risk of recession has increased worldwide, this year the global growth rate may be 0.9 percent

  • Morgan Stanley and Goldman Sachs said – Any possibility of economic boom only after June
  • Government should first stop virus infection and after that give big relief package for economic boom
  • China’s GDP will decrease by 5 percent in March quarter, US GDP will decrease by 4 percent in June quarter

After the outbreak of Corona virus, the shock of decline in crude, shares and gold and silver, negative impact on industry and business and the relief package of central banks of different countries, the world is now moving towards a severe recession. This has been said by economists of two American investment banks and financial services companies Morgan Stanley and Goldman Sachs. According to him, the global growth rate may come down to 0.9 percent this year. If there is any possibility of economic boom, it is only after June.

Any possibility of economic boom only after June

Economist Chetan Ahaya and his team at Morgan Stanley said that the threat of global recession was now underway. According to him, the global growth rate may come down to 0.9 percent this year. Meanwhile, economist Jan Hatzius and his fellow economists at Goldman Sachs said that the global growth rate could be reduced to 1.25 percent. Economists of both groups believe that economists believe that any possibility of a boom in the global economy is in the second half, that is, only after June.

Government stops virus infection first, then gives big relief package

According to data from the International Monetary Fund (IMF), the upcoming recession will not be as dangerous as 2008-2009, when the global growth rate fell to 0.8 per cent. But this recession will be deeper than the recession seen in 2001 and early 1990s. Morgan Stanley and Goldman Sachs stated that governments should first try to prevent the corona virus and, when the virus is under control, bring a proper relief package to accelerate the economy. Morgan Stanley said the global economy would suffer a setback due to the impact of the corona virus (covid-19) and poor financial condition. However, there is still a lot of uncertainty about how long the virus infection will continue and what will be its impact on the economy.

Economic slowdown will be seen in March quarter in China and June quarter in rest of the world

Morgan Stanley said that China would face severe economic slowdown in the first quarter of this year i.e. January-March. After this, the recession may deepen in the rest of the world in the second quarter ie, April-June. China’s GDP may decline by 5 percent in the first quarter. After this, there will be development gradually. US GDP may decline 4 percent in the second quarter. According to economists the worst condition will be that of the Eurozone. Eurozone GDP may decline by 5 per cent for the whole year. According to Goldman Sachs, the global economy will see a sharp increase later this year. According to Morgan Stanley, however, the government’s actions depend on how long the recession will last.

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