The Coronavirus pandemic has caused severe adverse effects on the world’s economy. The virus has infected many people, and several have died. As a result, it called for the closure of companies, schools, and other economic activities. At the moment, cash flow is not the same as it was three months ago.
The immense despair is due to the impact of the Coronavirus pandemic. Despite this challenge, the European markets are ready to gear up operations on Wednesday. The region is speculating about lifting the restrictive measures in different countries to restart the economy gradually.
The effect of the virus on the European economy
According to IG, London FTSE sees twelve points lower opening- at five thousand, seven hundred and seventy-nine. Germany DAX speculates to open three points lower -at ten thousand, seven hundred and four. Italy FTSE MIB anticipates opening one hundred and twenty-one points lower -at seventeen thousand, three hundred and forty-eight. France CAC 40 is considering twenty-three points lower opening -at four thousand, five hundred and six.
The International Monetary Fund says the world’s economy might suffer the worst financial crisis ever in 2020. International Monetary Fund speculates the economy to contract by three per cent in 2020. By comparison, the IMF predicted a universal gross domestic product growth of 3.3 per cent for this year.
The reaction of various countries
On Tuesday, the United States said it would suspend financing the World Health Organization while it evaluates the agency response towards the pandemic. President Donald Trump claims that the international health board made a lot of mistakes that led to many deaths. He says to some extent it is their fault the virus has spread rapidly across the globe.
However, the United Nations Secretary-General Antonio Guterres responds by calling unity and solidarity for everyone. Mr Antonio says this is not the tie to reduce resources, especially during this trying time of Coronavirus. Guterres recommends for togetherness during this fight. According to reports, there is hope in Europe as life could return to normal.
Various countries expect to lift restrictions on public life as well as crippled businesses during the outbreak. For instance, Spain has reopened some manufacturing industries and construction sites. Similarly, on Monday, Italy allowed a few parts of the country to open stationery shops and bookshops. Besides, on Tuesday, they also reopened shops selling children’s clothes.
Furthermore, Denmark is looking forward to reopening kindergartens as well as elementary schools on Wednesday. Conversely, countries like the United Kingdom and France are hoping to extent lockdown policy to early May.
Conclusion
According to the news, as of Wednesday, Europe did not record any higher earnings. Similarly, countries like Sweden, Spain, France, and Italy expects consumer price inflation. Let us hope the fight end as soon as possible for the economy to survive.
Following the latest news on the reopening of the market, it is a sense of hope for humankind. I call upon everyone to hold on tight in this fight as together; we will survive.
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