Pandemic caused by coronavirus is taking more and more harvest all over the world. Its effects are already being felt by global economies. According to the estimates of the International Monetary Fund, the global economy will shrink by 3% in 2020, which is much more than during the crisis in 2008-2009.
The most optimistic scenario assumes the disappearance of the pandemic in the second half of 2020. Along with the normalization of the global health situation, economies are expected to grow slowly.
The 2020 economic crisis has its name “The Great Lockdown”
Each significant global event has its name. The largest economic crisis in the history of capitalism, which occurred in 1929-1933, was called the “Great Depression”. In turn, the economic downturn of 2008-2009 was called the “Global Financial Crisis”.
The economic crisis caused by COVID-19 is more and more often referred to as “The Great Lockdown”. This formulation was used on Tuesday by Chief Economist of the International Monetary Fund (IMF), Gita Gopinath, who said:
“The great blockade is the worst economic downturn since the Great Depression and much worse than the global financial crisis [z 2008 r.]”
The term “Great Blockade” largely refers to travel bans. In some countries such as India, you can leave your houses or apartments once every three days. Fortunately, the restrictions in Poland are not so restrictive.
We can also consider the “Great Blockade” in the context of global economies. Many of them have been “blocked” and development has slowed down significantly. According to IMF forecasts, the biggest drops await Europe -7.5%. Compared to last year’s increase of 1.2%, this will be a giant “handbrake”.
Latest world economic outlook from @IMFNews for 2020 growth (vs. 2019):
* World: -3% (2.9%)
* US: -5.9% (2.3%)
* Euro Area: -7.5% (1.2%)
* Japan: -5.2% (0.7%)
* UK: -6.5% (1.4%)
* China: 1.2% (6.1%)
* DM: -6.1% (1.7%)
* EM: -1% (3.7%)
– Liz Ann Sonders (@LizAnnSonders) April 14, 2020
The reflection is assumed to be 2021 and according to forecasts it will have a rapid character.
Chance for Bitcoin
The forecast economic crisis caused by COVID-19 may prove to be an opportunity for Bitcoin. The most popular cryptocurrency has seen significant increases recently. After the price collapse in March and a drop below USD 4,000, course BTC rose and the moment I wrote this article hovers around $ 7,000.
Still ahead of us Halving Bitcoin, which from a historical perspective was the “driving force” for growth. Bitcoin he has never witnessed a serious economic crisis, which is why this test is so important. So far it seems perfectly.
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