Are we Heading for Another Testing Recession?By Taimoor T
No one expected this but the world has already entered into recession with markets everywhere getting pummeled as countries struggle to contain COVID-19.
Recession is here and by the looks of it, it is not going to go away that easily. In the grand scheme of things, coronavirus has brought humanity to its knees and we are now staring at a financial crisis that might even pale in comparison to the crisis we came across between 2008 and 2010 when the global GDP was slashed by 5%.
Economy Being Brought to its Knees
Sugarcoating words is not really going to make much of a difference. Some of the most efficiently run institutions and organizations in the world are struggling to cope with the pandemic which basically means that startups and small businesses are going to be affected as well.
With the global economy moving at snail’s pace due to COVID forcing people to stay indoors, it is understandable that a lot of companies might not be able to sustain their operations for a long time.
But hey….it is not all doom and gloom!
Countries Reacting Strongly
At present, countries around the world have started introducing packages to keep their respective financial markets functioning so as to avoid reductions in credit or liquidity. The U.S for instance has been very proactive and the Congress has already passed three packages worth well over $2 trillion.
Every state is trying to help support the most basic needs of its people so yeah, times are lean and very unpredictable but at the end of the day, the overall response has been really great.
A recession might be here and in the coming weeks, we might see a lot of unemployment but at the end of the day, it appears that countries are being very smart about things this time around and are taking good measures to slow down the downward trajectory.