From the United States to China and from India to Germany, every big economy seems to be in a mess, due to the scare of Coronavirus. Almost all of the world is in lockdown and hardly any economic activity is in practice. I cannot remember any such incident in history where the whole world remained stagnant, not even during the World Wars. The world has witnessed multiple recessions, including the one in 2008-09. We have also seen several depressions, including the great depression of the 1930s. Although we are yet to enter the state of economic recession, there seems no clear way to avoid this downfall, which acts as a difference between the previous and the current situations.
The other day I was going through a story on Finance Infinity, in which the current situation of intense uncertainty was detailed in a subtle way. It says, due to Coronavirus being new to the world, scientists are yet to find vaccines and solutions. This has forced countries to focus on nothing but investments in medical infrastructure. Cases of COVID-19 are attaining peak with each passing day. As of April 4, we have more than 1.03 million cases worldwide with over 54,000 deaths. What’s worrying is the chart that contains major economic powers on the top of Corona deaths.
USA: 245,380+ cases, 6095+ deaths
Spain: 117,710+ cases, 10936+ deaths
Italy: 115716+ cases, 13974+ deaths
Germany: 85871+ cases, 1121+ deaths
China: 81622+ cases, 3322+ deaths
France: 59929+ cases, 5398+ deaths
The latest United Nations trade report predicted that the global economy will enter recession this year, bringing serious trouble for developing nations with the likely exception of India and China. The world economy is set to experience trillions of dollars of loss. India is preparing to fight COVID-19 in full capacity. Although the country is capable of defeating the virus on its own, thanks to its economic might, it may face trouble if the lockdown won’t get extended further. Once the crisis ends, India is expected to emerge as major economic leader in the world.