Global economy to take a £220 billion hit due to the COVID-19 Pandemic

Business all over the world will be affected negatively to the tune of about £220 billion in the first quarter due to the coronavirus pandemic.

The world economy to suffer great economic loss in the first quarter

The COVID-19 outbreak has thrown the world economy into a loss of about £220bn in the first quarter of this year, according to financial experts. Capital Economics has estimated that the world GDP growth would stand still for the first time in more than 12 years, even if COVID-19 goes away today.

This warning came shortly after Top fashion franchise Burberry removed the profit forecast for 2020 as the pandemic outbreak threatens to run them out of business. The pandemic will cost the world’s economy more than expected. Capital Economics predicted global GDP growth would stall for the first time in more than a decade, even if the epidemic is brought under control soon.

Top companies already suffering great economic loss

Top car developers and cosmetic firms like L’Oréal were among companies warning others about the negative economic impact this pandemic will affect the economy, as many factory shutdowns, travel impediments, and quarantines are affecting production.

Many factories, stores, and eateries across the country have been closed as authorities shut down major cities in an attempt to reduce the transmission of the virus.

Transportation services have also been affecting various supply routes in the world. A top financial analyst, Simon MacAdam, stated that the economic disruption due to the pandemic will cost the economy over $200bn in the first quarter of this year