Coronavirus

In December 2019, suddenly unexplained cases of pneumonia began to appear in China. To this form of the virus, since it appeared in 2019, Coronavirus So 2019 COVID-19 said.

Coronavirus In fact, it is a common virus in animals. The source of the virus that has recently caused the disease is thought to be the Huanan seafood market in Wuhan, China.

Effects of Coronavirus on the Economy

The coronavirus has an impact on every aspect of life. One of the most affected situations was the economy.

If the outbreak continues, the scenarios waiting for the economy could get worse.

There are also different possibilities if the outbreak does not end in June. If it doesn't end during the summer, a bad scenario awaits the world economy.

As a result of Turkey's good evaluation of the upcoming process, we can also show serious success in the economy, among the forecasts.

How is the Turkish economy affected by this?

• Turkey's CDS rate (risk premium) has reached 500 levels. (This means that our borrowing costs will increase.)
• Oil and commodity prices declined. When we put these together, it will be reflected in the need for foreign financing and as a significant advantage for Turkey, which has an import-intensive economy. If the $20 drop in oil prices is permanent, it will have a minimum of 0.5-1.0 points reduction effect on inflation.
• Turkey, in an effort to recover in the economy by bringing interest rates down, will be adversely affected by the slowdown in the global economy. The Central Bank lowered its policy interest from 10.75 per cent at the emergency meeting to 9.75 per cent.
• Unemployment. All over the world and in Turkey, recession, bankruptcies in the real economy, layoffs will be expected.

How is the global economy affected by this?

On Monday, world stock markets were hit violently, with the price of crude oil falling by more than 20 percent in a day, followed by insurance from the stock market when the S&P 500 stock market index suddenly dropped by 7 percent.

Obviously, the effects of the coronavirus pandemic have gone far beyond a global health crisis.

Global economic and Geopolitics The landscape seems to change as well.

The effects of the coronavirus outbreak appear to be strengthened by price wars in the oil market, further increasing the likelihood of global recession. The setbacks and drastic fluctuations that caused a loss of $1.5 trillion in the stock markets also suggest that this possibility is becoming more and more accepted by investors. It's hard to say they're wrong.

Here are some effects of coronavirus on the global economy already;

• Stock markets suffer biggest depreciation since the 2008 crisis
• Oil prices drop by 30 percent: biggest loss of value since the Gulf War in 1991