Global recession coming if business doesn't pick up, top economist warns Andrew Castle
2 March 2020, 15:22 | Updated: 2 March 2020, 15:29
Global falls in the stock markets have led to anxiety in the business world as to whether the world is facing a recession, but this economist came on air to break down the possibility.
Andrew Castle was joined on the line by Simon French, chief economist at Panmure Gordon to discuss how coronavirus has impacted the global and domestic economy.
It is apparent that there's been a real slowdown in trading and major companies have taken hits in the last few weeks as China's economy has slowed to a near halt as it battles to contain coronavirus.
Andrew started with the question on everyone's lips: "are you expecting a recession now?"
In the short term, Simon French noted that the UK has experienced anything but a recession in the last few months. "There has been a significant rebound in the UK since the general election."
Mr. French stated that because of a stable majority government in power, there is more certainty around the UK economy aside from the global coronavirus crisis. Down to this, the economist believes "the near term risk to the UK economy fitting that description is relatively low."
Simon French wasn't so quick to dispel all worries however. He stressed that on a global level the economy is on a tightrope.
Mr. French had pushed that there are different definitions of recession through the world and said "by most people's definition we'd face the first global recession for the first time in a decade".
Andrew showed worry for this, observing the hit people have already felt in their daily lives while trying to compensate and accommodate the disruption coronavirus has caused.
Although the world is on the brink, the economist pointed out that if business was confident enough to make it through the early stages of this year and compensate for losses in the latter stages of the year, the world economy might be safe.
Simon French put it simply that "if businesses can see through a path to later in the year where they can play catch up" then we could see some respite to the impact coronavirus has had on the global economy in the beginning of the year.