Economists warn of global coronavirus recession

16 Mar 2020

The coronavirus pandemic will cause a global recession as action from governments around the world fails to halt sliding stock markets, warn economists at Barclays.

The US Federal Reserve has cut interest rates to a target range of between 0% and 0.25%, and unveiled a significant financial stimulus package. It follows a rate cut by the Bank of England and further quantitative easing by the European Central Bank. According to Barclays, these actions have had limited impact as the virus has moved quickly from China, through Europe and into the US.

Travel bans, school and university closures, the postponement of sports events and other restrictions are all combining to reduce demand.

Barclays predicts global economic growth will be just 1.8% this year, with the US falling from growth of 2.3% last year to 0.8% in 2020. It also says Europe will fall into negative growth and shrink by 0.5%, while UK economic growth will fall by 0.2%.

Commenting on the global outlook, Christian Keller, Head of Economic Research at Barclays, said: 'Developments this week have crushed any remaining hopes of containing COVID-19 to certain regions or to areas within certain regions as new cases of infection accelerate.

'A global recession is now likely, Europe looks to be fully affected by the virus and, increasingly likely, also the US.

'The significant restrictions to public life, including quarantines, school and university closures, reduced travel, limitations to the size of events et cetera imply large negative effects on activity in the second quarter.'

Register for our newsletter

Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Register

Weston-super-Mare

34 Boulevard
Weston-super-Mare
Somerset
BS23 1NF

01934 415022

Cheddar

Bath Street
Cheddar
Somerset
BS27 3AA

01934 743274


Home | Contact us | Accessibility | Disclaimer & Privacy Policy | Help | Site map |

© 2020 Four Fifty Partnership. All rights reserved.

We use cookies on this website, you can find more information about cookies here.


Registered to carry on audit work in the UK by the Institute of Chartered Accountants in England and Wales. Details about our audit registration can be found at auditregister.org.uk under the reference C001092613.

"four fifty partnership" is a trading name of Four Fifty Partnership Limited. Registered in England. Company Number 5032008. Registered Office 34 Boulevard, Weston super Mare, Somerset BS23 1NF.

Directors: Richard Acreman BSc CTA, Joy Boswell FCCA FCA, Peter Ison BA FCA and Nick Gravell FCCA FCA.

Professional Indemnity Insurers: Nexus Underwriting Limited 52-56 Leadenhall Street, London EC3A 2EB (Policy Number: BC6210PIA194). The territorial coverage is worldwide excluding professional business carried out from an office in the United States of America or Canada and excludes any action for a claim brought in any court in the United States of America or Canada.