By now, we’ve all heard of the outbreak of the new coronavirus. It has expanded much farther and more quickly than experts had initially predicted. The virus has been reported in more than 50 countries and has unfortunately taken the lives of over 3,000 people. While medical personnel attempt to contain the growing health concerns, economic experts have been dealing with the worldwide economic impact.
Last week, we saw severe declines in global stock markets as coronavirus picked up more traction. There have even been talks of an increased risk of recession. Overall, the economic impact is expected to get worse before it gets better. Despite this, the Dow Jones Industrial Average and the S&P 500 rose on Monday (02/03/2020) after reports came out that the Federal Reserve might lower interest rates to lessen any further economic decay. Association of Chartered Certified Accountants (ACCA) Chief Economist Michael Taylor had this to say:
“For now, this is still our central case — whatever the short-term effects, we expect activity to recover, such that by the second half of 2020 global economic activity is growing at the rate it would have been if the coronavirus outbreak had not occurred…”(Taylor).
This is a rather encouraging statement and provides some calm to the storm that the world is currently experiencing. It is important to remember that the best way to protect yourself is by increased hygienic care. The media often unintentionally propagates issues such as this so we ought not to panic. Good to know we have our top people from around the world on the job.