[181] In Brazil, the Ibovespa plummeted 14.78%, after trading in the B3 was halted twice within the intraday; it also moved below the 70,000 mark before closing above it. trade war fears prompted a sell-off in global stock markets during March 2019, which prompted more fears that a recession was imminent. As a result, the country's gross domestic product reduced at a rate of 4.8 percent during the first quarter of 2020. That’s 37% of the adult population. 99¢ NC. [110][111] On 9 March, most global markets reported severe contractions, mainly in response to the COVID-19 pandemic and an oil price war between Russia and the OPEC countries led by Saudi Arabia. The decline is led by a decrease in household spending which typically accounts for 70% of the country's GDP and hesitancy on spending due to COVID-19 community quarantine measures. [318] A day later, the Chancellor of the Exchequer Rishi Sunak announced the government would spend £350 billion to bolster the economy. [263], The unemployment level of 5.1% is projected to rise to a 25-year high of 10.0%, according to Treasury data released in April 2020. You may opt-out by. For example, 8 of the 17 million leisure and hospitality jobs were lost in March and April. Collect. [261][262] In April 2020, a water consultant predicted a shortage of rice and other staples during the pandemic unless farmers' water allocations were changed. [323], By the start of May, 23% of the British workforce had been furloughed (temporarily laid off). [187][188] The Mexican peso also set an all-time record low against the U.S. dollar, trading at 22.99 pesos. [167] The Central Bank of Brazil auctioned $1.78 billion Foreign exchange spots. [335] The German automotive industry is coming into the crisis after having already suffered from the Dieselgate-scandal, as well as competition from electric cars. [351][352] However, because of the lockdown implemented to slow down the spread of the virus before the time of the first protests unemployment rose suddenly in less than one month leaving over 21 million without a job in the US only (from 3+% to 14+%), which also supported the circumstances needed for long lasting protests. [350], Large-scale property damage stemming from the protests has led to increased insurance claims, bankruptcies, and curbed economic activity among small businesses and state governments. “Economists aplenty have opined that a recession is coming in the next 18 months or so. The worst … Instead, focus your time, effort, and energy on doing what’s needed to thrive even if the economy does head south. [242], Approximately 5.4 million Americans lost their health insurance from February to May 2020 after losing their jobs. Bruce Kasman, JPMorgan chief economist, joins 'Power Lunch' to discuss why JPMorgran expects a recession in 2020. [164] Australian Prime Minister Scott Morrison announced a A$17.6 billion fiscal stimulus package. My mission is help GenX'ers achieve financial freedom through strong money habits and unleashing their entrepreneurial spirit. I'll show you a new way to accelerate your wealth building. In the beginning of March 2020, some major cities in the US announced that bars and restaurants would be closed to sit-down diners and limited to takeout orders and delivery. [214] If you can’t pay off all your debts, pay off or pay down as many as you can. [302], On 29 April, the Ministry of Manpower (MOM) said that total employment excluding foreign domestic workers dropped by 19,900 in the first three months of the year, mainly due to a significant reduction in foreign employment. "[99] The price of oil briefly went negative on 20 April 2020. However, due to the further reinstatement of restrictions on Victoria, notably stage 4 restrictions, national unemployment is now set to reach 11%. [27], The recession saw a drop in the price of oil triggered by the 2020 Russia–Saudi Arabia oil price war; the collapse of tourism, the hospitality industry, and the energy industry; and a significant downturn in consumer activity in comparison to the previous decade. Tourism, which employs one in ten Egyptians and contributes about 5% of the GDP, has largely stopped, while remittances from migrant workers abroad (9% of GDP) are also expected to fall. [citation needed], Prior to opening, the Dow Jones Industrial Average futures market experienced a 1,300-point drop based on the pandemic and fall in the oil price described above, triggering a trading curb, or circuit breaker, that caused the futures market to suspend trading for 15 minutes. [343], The pandemic has had a significant impact on the aviation industry due to the resulting travel restrictions as well as slump in demand among travelers. The media exploit those concerns. [119][120] During this time, one benchmark stock market index in all G7 countries and 14 of the G20 countries had been declared to be in Bear markets. [253], Other sources may expect different figures. But if you’re still working, and contributing to your 401(k) plan, you need to keep investing for the long-term. London's FTSE 100 lost 7.7%, suffering its worst drop since the 2008 financial crisis. About 16 million jobs were lost in the United States in the three weeks ending on 4 April. Nigeria’s recession could last up to 2023 – World Bank predicts. As soon as you read or hear that a disaster is coming, you’ll want more information. Will Recession Strike in 2020? [316], On 19 March 2020 the Bank of England cut the interest rate to a historic low of 0.1%. When I used to work with people in my financial planning practice, I’d see and hear many wanting to sell everything and move into cash. 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