- There are palpable fears that the spread of coronavirus may lead to global economic recession
- The fear of the spread of the disease wiped $5 trillion from the world share markets on Friday, February 28
- The hope of containing the virus within a limted time has been shattered as about 10 countries, including Nigeria, recorded first cases of coronavirus within the last 24 hours
The spread of coronavirus may lead to global economic recession as world share markets crashed on Friday, February 28, wiping $5 trillion from the world economy.
NBC News reports that the crash is the worst experienced since the global financial crisis experienced in 2008.
The major markets in Europe slumped 2-3% while the United States government bonds also recorded lows.
There are projections that the US and other major central banks across the world will cut interest rates to avoid global recession.
The global economy is in bad shape and there seems to be no end in sight as afftected countries sht down schools, cancel major events and experience serious distruptions in international travel.
With hopes of containing the spread of the virus now shattered, there are fears that the situation may beome a pandemic.
Legit.ng gathers that the World Health Organization's director general, Tedros Adhanom Ghebreyesus, said the virus could become a pandemic as the outbreak spreads to major developed economies such as Germany and France.
Within the last 24 hours, about 10 countries have reported their first virus cases, including Nigeria, the biggest economy in Africa.
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Earlier, Legit.ng reported that Oil prices had fallen as concerns about the global spread of the coronavirus causes anxiety among investors.
Oil prices fell over 2% on Monday, February 24 as the spread of the virus left investors worried about a potential fall in demand.
With new cases recorded in Iran, Italy and South Korea, Brent crude reportedly fell by $1.42, or 2.4%, to $57.08 a barrel by 0552 GMT; U.S. crude also fell by $1.26, or 2.4%, to $52.12.
Edward Moya, a senior market analyst at OANDA, noted that “demand destruction for crude is likely to intensify as travel restrictions will likely increase as the coronavirus outbreak becomes a global threat and not just contained to China.”
He added that oil prices are likely to remain vulnerable as the coronavirus became a global pandemic.
Also, the Saudi Arabian government on Thursday, February 27 suspended visas for pilgrims wishing to visit the holy city of Mecca over coronavirus fears.
This was announced by the foreign ministry of the Kingdom said in a statement sent to journalists.
“The government is suspending entry to the Kingdom for the purpose of Umrah and visiting the Prophet's Mosque temporarily,” part of the statement read.
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