By: Dr. Alejandro Diaz-Bautista, Economist, (PhD).
- President Trump establishes new travel restrictions on the coronavirus, considering the closure of the United States border with Mexico.
- Global economic and financial impacts of the coronavirus in 2020.
Global markets plummet about 10% in the worst week since the 2008 crises. Concerns about coronavirus impact will continue to impact global governments and markets economically “The rapid spread of the virus outside of China, and its arrival in the United States and Mexico is already scaring regional and world investors, who have distanced themselves from the assets with the highest risk,” stressed Dr. Alejandro Díaz-Bautista, economist and research professor at the Northern Border College.
While President Trump sets new travel restrictions on the coronavirus, considering the closure of the U.S. border with Mexico, in response to the coronavirus outbreak that has taken the first American life, while assuring the United States that there is reason to panic.
President Trump said there are 22 patients in the United States who have coronaviruses. Unfortunately, one person passed away overnight,” Trump said, a few days ago, speaking in a press conference in Washington, D.C.
The State Department already has a Level 4 alert to stop Americans from traveling to China, where the outbreak originated. Officials in Ecuador confirmed the first case of the new coronavirus in the South American nation on Saturday, and Mexico reported two more to bring the country’s total to four.
Closings and quarantines around the world have scared investors, and the stock markets are suffering a dramatic drop this week that has scared world markets. As new cases emerge in the United States, tensions between Trump and Democrats are also mounting.
At a rally in South Carolina on Friday night, Trump accused his Democratic critics of politicizing the coronavirus outbreak and dismissed criticism of his handling of the virus. Markets anticipate that the Federal Reserve could cut interest rates at its mid-March meeting, which until recent days was not among the operators’ projections.
The Fed would cut the cost of credit as early as March to cushion the impact of the coronavirus on the world’s largest economy.
Wall Street’s decline in the week adds up to the decline in the European and Asian stock markets, dragged by the concern that currently exists in the markets before a possible global economic recession and a loss of profitability in the corporate world due to the coronavirus outbreak.
While the economic cost of the coronavirus expands in China and beyond its borders. News of new cases around the world raised projections that the economic effects will be much stronger and longer-lasting than originally anticipated.
Finally, markets are trying to estimate how long this will last and what the global economic damage will be from coronavirus 2020. The coronavirus, officially named covid-19, has spread to more than 40 countries. It is a respiratory infection that causes symptoms similar to pneumonia and that has killed almost 3,000 people worldwide.