The shock to the global economy from COVID-19 has been both faster and more severe than the 2008 global financial crisis (GFC) and even the Great Depression.
In those two previous episodes, stock markets collapsed by 50% or more, credit markets froze up, massive bankruptcies followed, unemployment rates soared above 10%, and GDP contracted at an annualized rate of 10% or more. But all of this took around three years to play out. In the current crisis, similarly dire macroeconomic and financial outcomes have materialized in three weeks.
What is the expected impact of COVID-19 on the world economy in the next 3 monthes?
The impact of coronavirus (COVID-19) on the worldl economy is very strong - expectations are for a significant reduction in GDP, with some countries being over 10%, rising unemployment, lower household incomes, shrinking consumption, etc. Transport, tourism, trade, international relations are strongly affected and measures to support them during a pandemic are very important.
They'll obviously be a serious short term hit, the main consequence though will be to accelerate China's rise and the extent of threat that it poses to the USA. It could be the beginning of the end of the monopolar world.
https://www.euronews.com/amp/2020/05/20/coronavirus-how-much-is-the-world-economy-expected-to-shrink
https://www.cnbc.com/amp/2020/04/24/coronavirus-pandemics-impact-on-the-global-economy-in-7-charts.html
https://news.un.org/en/story/2020/05/1064032