Markets hit record lows, recession fears loom as global economy scrambles amid COVID-19

U.S. stocks suffer historic drop as the country shuts its borders and governments worldwide impose drastic measures to contain the virus and the damages it has caused.

Financial markets experienced their worst day in 30 years despite the emergency measures by central banks in an attempt to avoid a recession. US stock markets fell 12% to 13%, eliminating trillions of dollars of value in the market.

In the previous month, financial markets hit record highs as many assumed the virus was going to be contained in China. However, the drastic measures imposed by governments in recent weeks already canceled flights and slashed oil demand, while governments released billions of dollars’ worth of loans and grants. 

As states from America pleaded for faster national response to the virus, President Trump has urged everyone to postpone social activities and called the virus an “invisible enemy”. He later warned that a recession was possible.

An advisor to the White House said that the U.S. government could inject $800 billion into the economy to minimize damages. Meanwhile, E.U. finance ministers planned a coordinated economic response as threats of recession also loom over the European Union.

WHO Director General Adhanom Ghebreyesus stated that the best way to slow down the pandemic was to further test all suspected cases, saying that countries “cannot fight the pandemic blindfolded.” 

In Italy, the total death toll has amassed to 2,158 with almost 28,000 confirmed cases. The reports were considered more dire than the reports in China during the virus’ peak in the country.

Countries worldwide have canceled all mass gatherings of sports, religious, and cultural events as the virus death toll hit 7,000 globally, with 179,000 infections.