Coronavirus: are we facing a global recession?
Supposedly originating from a bat in a food market in Wuhan, China, the knock-on effects of the coronavirus have been heavily felt across the whole world. While measures have been put in place to control the spread of the virus and its associated health risks, the global economy seems to be treading much more uncertain waters.
As governments put measures in place to restrict free movement and encourage isolation to protect the health of their citizens, the consequences of such measures could push the global economy into recession, according to economists. Last week, the FTSE 100 suffered its worst day since the 1987 crash, and companies are raising concerns about its impact on their businesses. The travel industry is particularly hit as a result of the travel restrictions, with British Airways announcing its survival is at stake. The airline sector is expected to ask the UK government for immediate aid of up to £7.5 billion to survive the crisis.
Last week, Chancellor Rishi Sunak announced the new 2020 budget, in which measures to mitigate the coronavirus featured heavily. These included measures to support small and medium-sized enterprises, as well as self-employed individuals who are likely to be hit financially by the coronavirus the hardest. For all those advised to self-isolate, a statutory sick-pay will be administered.
It is safe to say, the coronavirus is likely to remain a cause for concern for weeks, if not months to come. Make sure to read the NHS guidelines to manage the situation on an individual level.
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