The epidemic spreads fear on the global economy

The epidemic spreads fear on the global economy 5

The epidemic spreads fear on the global economy

The Covid-19 epidemic that appeared in central China last December has now spread to 6 continents at a significant speed.

It disrupted work, wiped out $6 trillion in global stock markets, created negative economic reactions and raised well-founded fears of a severe global recession.

When the epidemic appeared in China – a globally integrated economy with a large population that frequently moves, major markets around the world were not too interested in this news, even when President Xi Jinping

For most of January and February, analysts encouraged investors to buy and wait for the market to increase in price.

Everything turned upside down when cases of nCoV infection began to appear and skyrocket in Italy, Iran, Japan and South Korea, present in more than 50 countries and territories worldwide.

A notice dated February 28 on the A43 highway in France reads: If you have symptoms of nCoV infection, call 15. Photo: Zuma Press.

With such an unpredictable and rapidly spreading epidemic, how to deal with it becomes headache-inducing and complicated.

Previously, when the Covid-19 epidemic was only a Chinese problem, an economic recovery scenario sounded reasonable.

The Covid-19 epidemic hits the revenue, profit margins and assets of corporations.

Before this outbreak, global trade fell last year for the first time since 2009 because of the tariff war between the US and China and a manufacturing recession.

The epidemic is also raging as fiscal deficits in the US, Japan and much of Europe become worrying.

Another, potentially major worry is that the global credit system is showing signs of difficulty.

According to the World Health Organization, all this economic pain can be viewed another way: It is the price the world must pay for failing to improve biosecurity against more than 1,500 new pathogens.

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