Recession risk calls for joint response – U.N. chief

LISBON, Portugal – United Nations chief Antonio Guterres on Sunday, March 15, urged governments to work together to stop the coronavirus pandemic from plunging the global economy into recession.

“No country can face it alone,” the secretary-general wrote in an opinion article in the Publico daily.

“More than ever, governments must cooperate to revitalize economies, expand public investment, promote trade, and ensure that people and communities affected by the disease are supported,” he said.

The virus was “infecting the global economy,” he said.

The pandemic had created a “real and growing risk of a global recession,” the former Portuguese premier said. (READ: Unlike 2008, world’s economic doctors feud over cure)

The International Monetary Fund, which releases its updated outlook on the world economy next month, has said that the severity of the slowdown will depend on how long the virus outbreak lasts and how governments respond.

In January, the fund was still projecting world gross domestic product growth of 3.3%, but that was before global disruptions, shutdowns, and plunging oil prices.

IHS Markit, an economics research firm, this week slashed its forecast for global growth to 1.7%. (READ: Coronavirus credit crunch risks turning firms into zombie army)

The coronavirus has infected close to 160,000 people worldwide and killed more than 6,000, according to the latest Agence France-Presse tally of official figures. – Rappler.com