First of all, I must add this yeah. NO ONE can predict with any great accuracy about when a recession will happen. Not even economists and when they get it wrong, they will predict again and again and again. So, when we read what happens from the effects of COVID-19, it’s super important to look at all the potential should COVID-19’s current situation becomes better as well. That’s why some are crying about the stock market while some of my friends are happily starting to pick good companies to buy and stay the course.
Article in themalaysianreserve.com World Health Organisation has declared Covid-19 a pendemic. This has caused major stock markets to tumble. These stock markets range from Japan to Hong Kong to Australia and even South Korea. For example, Japan’s Nikkei 225 closed 4.41% lower yesterday. European markets took the worst beating, especially Germany’s DAX, UK’s FTSE 100 and France’s CAC.
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said a prolonged drop of the global economy could lead the world into a recession. He shared that the world collapsed into recession during the global financial crisis of 2007/2008, which dragged the US economy back to the level seen during the Great Depression years in the 1930s. The global recession during the crisis pushed economies into the red. He gave us this warning too. “In this case, we need to consider various scenarios including the possibility of a recession in order to be prudent and prepared.” There are a lot more details in the Article in themalaysianreserve.com
If you ask me, of course I will hope that recession is averted since every country affected by the COVID-19 have launched initial economic stimulus to reduce the effects from this pandemic. For example, Hong Kong’s economic stimulus includes giving out cash too. (click to read) For us, this was announced just recently. This is Malaysia’s stimulus to fight COVID-19’s economic effects
I know, sentiment is extremely negative at the moment because it seems that the number of new discovery of patients infected by COVID-19 kept increasing daily too. I have faith that the health ministry’s officers are already doing their very best. Always take precautions. If we feel unwell, please do not go to public places. Just see doctor and go home and rest. Everyone needs to play their part too. All the best to Malaysia and the world in avoiding any potential recession.
Next suggested article: COVID-19 and it’s effects on property prices