World Economy Loses $ 5 Trillion Due to Coronavirus

Experts of the world economy estimate that the world economy is expected to lose about $ 5 trillion due to the pandemic of the Coronavirus.

The Chinese government, for example, had injected 26 trillion Yuan to stimulate the national economy.

The experts warn that the world is about to enter into a new passive depression over the period to come. The envisioned slump will be the most dangerous since the 1930s.

Many governments across the globe have ordered their national companies to suspend their activities and instructed their peoples to stay at home.

Despite the sinister expectations, the experts affirm that the depression may hold for a short period. Economists a the Stanly Morgan Bank forecast the slump will run for short range. But they point out that economies of the developed nations will return to the previous levels of growth by the third quarter of the next year.

On the other hand, the International Labor Organization (ILO) has warned that the Coronavirus would leave about one billion at the age of work, without jobs in all parts of the planet.

The organization released a statement saying that those who will not lose their jobs may suffer from reducing wages.

Restaurants, hotels, retail and various industries are the most vulnerable sectors in the world economy. Those sectors were hurt excessively due to the deadly virus which was ranked by the World Health Organization on March 10, as pandemic.

The ILO urges the governments to offer immediate aids to the employees and companies to protect the workforce against either dismal or shut down.

The statement of the ILO expected that work hours in the world will be reduced by 6.7% throughout the second quarter of the current year.

Kristalina Georgieva, managing director of the International Monetary Fund (IMF), warned that the world economy stopped, adding that the current depression is worser than 2008-2009 financial crisis.