Analysis by Julia Horowitz, CNN Business
Updated 2:26 PM ET, Mon March 9, 2020
London (CNN Business)The coronavirus outbreak has triggered extreme fear in financial markets as investors face up to an unsettling reality: The pandemic, unprecedented in modern times, could tip the world into a recession.
Italy’s decision to put much of its prosperous north — including its financial capital, Milan — on semi-lockdown, along with an escalating outbreak in the United States and a precipitous crash in oil prices, is forcing economists to reassess their predictions for how the virus will hit growth. To many, a contraction during the first and second quarters of 2020 looks increasingly likely.
Joachim Fels, global economic advisor at PIMCO, told clients on Sunday that he now sees a “distinct possibility” of a recession in the United States and Europe during the first half of the year, followed by a recovery in the second half. Japan, he said, “is very likely already in recession.”
“In our view, the worst for the economy is still to come over the next several months,” Fels said.
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Article URL : https://www.cnn.com/2020/03/09/economy/global-recession-coronavirus/index.html