Global recession is here to stay due to coronavirus – WEF

According to the latest report published by the World Economic Forum (WEF) showed on Tuesday, global economic contraction is likely to be a prolonged one, thanks to the coronavirus pandemic that is showing no signs of easing out so far.

Key findings (via Reuters)

"Two-thirds of the 347 respondents to the survey - carried out in response to the outbreak - put a lengthy contraction in the global economy top of their list of concerns for the next 18 months.

Half of risk managers expected bankruptcies and industry consolidation.

Saadia Zahidi, Managing Director of the WEF, said: “The crisis has devastated lives and livelihoods. It has triggered an economic crisis with far-reaching implications and revealed the inadequacies of the past.”

“We now have a unique opportunity to use this crisis to do things differently and build back better economies that are more sustainable, resilient and inclusive,” Zahidi added."

Market reaction

The above headlines had virtually no impact on the market sentiment, as a long-lasting global recession is almost priced-in.

The focus is now on the rife US-China tensions surrounding the coronavirus origin and its inquiry. Meanwhile, the US dollar index has stalled its rebound and now trades near 99.60, almost unchanged on the day.