Economists forecast that coronavirus pandemic is set to hit global economy by more than $5 trillion. This huge impact is equal to the Gross Domestic Output (GDP) of one of the major economies i.e. Japan.
Although the life of this forecast is short. As per economists, even after all the monetary and fiscal reliefs GDP will still take at least 2-3 years to return to its pre-coronavirus trend.
This is the similar period to the aftermath of 2008 financial crisis. The recovery this time could prove even faster as per the predictions of the analyst.
Morgan Stanley says that the Global economy is contracting. Despite aggressive policy and monetary stimulus. The global GDP will still take more than 1 year to return to its pre-virus position.
Deutsche Bank tells that coronavirus will affect the United States and European Union nations for more than $1 trillion. Both the economies will be able to cope up from this dent until the end of 2021.
The World Trade Organization (WHO) says pandemic will cause collapse of international trades. Trade flows will be worst hit after Second World War.
International Labour Organization mentions about job-risks. It says that around the world more than 1 billion workers and employees are at high risk for losing job. Analysts suggesting government to keep heavy restriction on travel. This will avoid re-occurring of pandemic in the country. Secondly, government should spend beyond financial measures to support the Rise in the global economy.