CORONAVIRUS could result in a brutal global economic crash that strong economies like the UK, US and Canada struggle to recover from.
Angel Gurría of the Organisation for Economic Co-operation and Development explained that many countries will see no growth or negative growth for 2020. He added the job losses caused by coronavirus will result in many economies struggling after the pandemic has been resolved. While speaking to BBC’s Victoria Derbyshire Mr Gurría noted small, and medium businesses would be struck hard from the swing in the economy and even large global economies like the UK, US and Canada will struggle in the future.
Mr Gurría said: “Coronavirus is going to affect us very seriously.”It affects the social, human, the health side and it will leave very big wounds and eventually scars on the economic side.
“This is because of the unemployment impact, the tens of thousands perhaps hundreds of thousands small to medium enterprises (SME) livelihoods will be at stake.”
Mr Gurría went into greater detail of the sectors that would suffer immensely due to the coronavirus, even after the pandemic.
Coronavirus ‘wounds and scars’ to result in ‘brutal’ global economic crash ‘for years’ (Image: Getty)
Mr Gurría claimed countries across the globe will be dealing with the economic fallout for years to come and it will result in a time of economic uncertainty. (Image: BBC)
He said: “Of course, you have to remember the very seriously hit sectors like tourism, service sector and hospitality sector.
“You can see all the businesses associated with those sectors facing an explosion, like in the US, Canada, the UK and elsewhere.
“All these unemployment claims that are happening by the millions over a few days is showing just how dramatic and brutal the problem will be.”
The economic expert has previously warned economic growth will slow down significantly following the coronavirus pandemic.
Mr Gurría noted small, and medium businesses would be struck hard from the swing in the economy and even large global economies like the UK, US and Canada will struggle in the future.
Mr Gurría claimed countries across the globe will be dealing with the economic fallout for years to come and it will result in a time of economic uncertainty.
In late March he told the BBC: “Even if you don’t get a worldwide recession, you’re going to get either no growth or negative growth in many economies of the world.
“This is including some of the larger economies.”
“Therefore you’re going to get not only low growth this year, but also it’s going to take longer to pick up in the future.”
Mr Gurría has also claimed the coronavirus economic impact will be more dramatic than that of the 9/11 terrorist attacks or the 2008 financial crisis.
He said: “We don’t know how much it’s going to take to fix the unemployment rate because we don’t know how many people are going to end up unemployed.
“We also don’t know how much it’s going to take to fix the hundreds of thousands of small and medium enterprises who are already suffering.”
Read the article on The Express.