The global economy is in a severe recession, and will continue for a long time – even after the lockdown for COVID–19 is lifted. All the countries are staring at a scenario that is worse than the Great Depression of the 1930s.
Globally, businesses and industries are likely to be shut at least for a few quarters. When it’s time to open, they would be welcomed not with lines of customers or orders but with overdue rents, pending interest payments on loans, outstanding salaries, stocked inventories, de-valued stocks and shrunken markets. Consequently, many companies will shut shop and declare bankruptcy.
As shops and offices shut down, the commercial space market is bound to have no takers. The real estate will crash as cash is likely to be in short supply; lifetime savings and investments for retirements will evaporate.
A considerable chunk of the working class will lose their jobs, and those who survive are likely to have reduced salaries. Consequently, spending and consumption will come down drastically; reduced disposable income will hit the hospitality and the tourism industry hard. This will have a “nail in the coffin” effect on sectors such as Aviation.
This is also bound to have a cascading effect on various other sectors. As businesses declare bankruptcies, banks will pile up bad-debts. Some stressed banks will go belly up, which will have a devastating impact on the economy.
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