Coronavirus: What now for the global economy and financial markets?

Abstract

The novel coronavirus has spread exponentially across the globe impacting many aspects of life and it continues to do so at an alarming pace. There are several concerns that stem from this pandemic such as when a vaccine will become available and the impact that it will have on human life. While the paramount concern is, without doubt, to conserve and protect life, there are other implications that should be acknowledged of which this paper is directed toward; the economy and financial markets. This paper will take a two-pronged approach focusing on the effects of the economy and financial markets; and looking to the future. Therefore, the focus of this paper is to illustrate the effects on the economy and financial markets during the beginning and heightened stage of the pandemic, including an up-to-date account, in three large economies, namely the UK, US and Japan. This will be followed by an observation of what the future holds taking into account financial stimulus packages, financial markets and the potential for financial crises. Data, literature and commentary from Governments, global organisations and other key entities will be included.

Keywords: Coronavirus, Covid-19, Economy, Financial Crisis, Financial Markets, Pandemic