I’m not sure if “Gloom Worldwide” is a euphemism to to replace “Global Recession” with instead of just saying GLOBAL RECESSION but without a doubt GLOBAL RECESSION is on the table now more than ever with the coronavirus economic impact underway capping off the multiyear worldwide Trump Slump. FP.com reports:
The cascading economic impact of the new coronavirus outbreak in China is becoming more apparent worldwide, with Apple’s surprise cut to its sales forecast due to supply chain disruptions spooking global markets and Asian governments downgrading growth prospects. German investor sentiment, meanwhile, is collapsing amid fears the outbreak will kneecap the incipient recovery in global manufacturing.
The fallout from the outbreak of the virus and China’s efforts to contain it—with more than 70,000 known cases and more than 1,800 deaths so far—comes at a particularly bad time for economies like Japan and Germany, which were just beginning to recover after a year of global trade tensions weighed on their manufacturing and exports. The virus has hit the global automotive industry particularly hard, which has a nasty knock-on effect not just inside China but also in Japan, South Korea, Germany—and potentially even the United States.
Despite China’s insistence that the rate of new infections is stabilizing, alongside an ostensible return to business earlier this month, the economic damage is most apparent inside China. Some sectors, like automobiles, are still all but shuttered as factories deal with worker absences and supply chain shortages and most car dealers remain closed. Other sectors, including mining, travel, construction, and retail, are also taking a big hit as Chinese consumers and workers, limited by travel restrictions and fears of infection, have halted most of their usual activity…
Japan, which has the most virus cases outside China, might be facing the biggest challenges after an already dismal fourth quarter showed a shrinking economy, with the biggest contraction in more than five years. Japanese automakers like Toyota and Nissan have seen output disrupted both at Chinese factories and at home, while inbound Chinese tourism is paralyzed for now. That raises the real risk of a recession for Japan, which just launched a huge economic stimulus package late last year and may need to prime the pump even further to avoid a full-blown crisis […]