Global shares take a hit
Big shifts in stock markets, where shares in companies are bought and sold, can affect the value of pensions or individual savings accounts (ISAs). The FTSE, Dow Jones Industrial Average and the Nikkei have all seen huge falls since the outbreak began on 31 December.
Investors fear the spread of the coronavirus will destroy economic growth and that government action may not be enough to stop the decline.In response, central banks in many countries, including the United Kingdom, slashed interest rates.That should, in theory, make borrowing cheaper and encourage spending to boost the economy.
Global markets did also recover some ground in late March after the US Senate passed a $2 trillion (£1.7tn) coronavirus aid bill to help workers and businesses.But some analysts have warned that they could be volatile until the pandemic is contained.
Oil prices crash
The surge in universal credit applications followed government measures to limit the spread of the virus, including closing pubs, restaurants and non-essential shops. Oil prices crash Demand for oil has all but dried up as lockdowns across the world have kept people inside. The crude oil price had already been affected by a row between Opec, the group of oil producers, and Russia. Coronavirus has driven the price down further.
Risk of recession
If the economy is growing, that generally means more wealth and more new jobs.
It’s measured by looking at the percentage change in gross domestic product, or the value of goods and services produced, typically over three months or a year.
But the International Monetary Fund (IMF) says that the global economy will shrink by 3% this year.
Courtesy : https://www.bbc.com/news/business-51706225
