What's in store?

29 Mar, 2020

The researchers in the field of economics and finance are still struggling to determine exact causes behind the Great Depression. The reasons behind the 2008 global meltdown or 2009 world Recession are too well known. The recession that is shaping up now for the chagrin or discomfort of the entire world has a very clear reason, or perhaps the sole reason: Covid-19. According to the IMF chief ,Kristalina Gorgieva, "Clear we have entered recession". She has reportedly told media persons that this recession will be worse than in 2009 following the global financial crisis. According to her, the Fund's estimate for the overall financial needs of emerging markets is $2.5 trillion. But she has warned that estimate "is on the lower end."
In 2009, it was China that helped the world recover through this Asian country's high growth rates. It was also China that forestalled the incidence of hyper inflation in Europe through its cheap goods. But things are now vastly different. The top economies, including the US, China, Japan, Germany and the UK, are struggling against the coronavirus onslaught. What is in store?

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