Some of the world's biggest economies are on the verge of recession | The Business Standard
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Monday
May 29, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
MONDAY, MAY 29, 2023
Some of the world's biggest economies are on the verge of recession

Global Economy

TBS Report
24 February, 2020, 11:35 am
Last modified: 24 February, 2020, 11:49 am

Related News

  • Washington’s new narrative for the global economy
  • Coronavirus origins still a mystery 3 years into pandemic
  • Covid remains a public health emergency, says WHO
  • China boost for flagging world economy looms as reopening starts
  • World economy's soft landing hopes boosted as 2023 begins

Some of the world's biggest economies are on the verge of recession

Bank of America economist Ethan Harris points to the number of smaller economies that are hurting, too

TBS Report
24 February, 2020, 11:35 am
Last modified: 24 February, 2020, 11:49 am
Smoke rises from a factory during sunset at Keihin industrial zone in Kawasaki, Japan, January 16, 2017/Reuters
Smoke rises from a factory during sunset at Keihin industrial zone in Kawasaki, Japan, January 16, 2017/Reuters

Some of the world's top economies could slide into recession as the spread of coronavirus outside China has darkened the already shaken outlook of the world economic growth. 

Take Japan: The world's third-largest economy shrank 1.6% in the fourth quarter of 2019 as the country absorbed the effects of a sales tax hike and a powerful typhoon. It was biggest contraction compared to the previous quarter since 2014, CNN reported.

Then there's Germany. The biggest economy in Europe ground to a halt right before the coronavirus outbreak set in, dragged down by the country's struggling factories. The closely-watched ZEW Indicator of Economic Sentiment in Germany decreased sharply for February, reflecting fears that the virus could hit world trade.

Bank of America economist Ethan Harris points to the number of smaller economies that are hurting, too. Hong Kong is in recession and Singapore could soon suffer a similar fate. Fourth quarter GDP data from Indonesia hit a three-year low, while Malaysia had its worst reading in a decade, he noted to clients on Friday.

Meanwhile, engines of growth like China and India slowed in 2019. Fourth quarter GDP data for the latter comes out this week.

All of this brings to the fore concerns about the global economy's ability to withstand a shock from the coronavirus. Harris says the weak quarter was likely a result of lingering damage from the trade war between China and the United States. The coronavirus is poised to make matters worse.

"Global equities have rebounded as the US and China have converged to a ceasefire, but companies with global supply chains remain deeply uncertain," he said.

On the radar: Even the United States may not be in as strong a position as previously thought. IHS Markit said Friday that US services sector contracted in February, with the reading hitting a 76-month low. It's the first time the sector has contracted in four years.

World+Biz / Top News

World economy / Coronavirus / Coronavirus impact

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Govt's borrowing from treasury bills up by Tk65,000cr in FY23
    Govt's borrowing from treasury bills up by Tk65,000cr in FY23
  • Photo: REUTERS/Umit Bekta
    Turkey's Erdogan prevails in election test of his 20-year rule
  • Infographic: TBS
    Inside Airbus's mega plan to develop the aviation ecosystem in Bangladesh

MOST VIEWED

  • The US Capitol building is pictured in Washington, US, January 26, 2022. REUTERS/Joshua Roberts/File Photo
    Biden, McCarthy forge debt deal in bid to avert US default
  • U.S. President Joe Biden hosts debt limit talks with House Speaker Kevin McCarthy (R-CA) in the Oval Office at the White House in Washington, U.S., May 22, 2023. REUTERS/Leah Millis
    Biden, McCarthy reach tentative US debt ceiling deal
  • People shop at a grocery market, in London, Britain May 6, 2023. REUTERS/Emilie Madi
    Brexit to blame for a third of Britain's food bill rise
  • The Belize-flagged general cargo ship Sormovskiy 121 is seen at the sea port in Chornomorsk after restarting grain export, amid Russia's attack on Ukraine, in Odesa region, Ukraine August 12, 2022. Press service of the Ministry of Infrastructure of Ukraine/Handout via REUTERS
    Black Sea grain deal slow to get moving after extension
  • U.S.President Joe Biden attends a meeting with Defense Department leaders in the State Dining Room at the White House in Washington, U.S. October 26, 2022. REUTERS/Jonathan Ernst
    Biden sounds hopeful on debt ceiling, Treasury warns of 5 June default
  • An oil pump jack pumps oil in a field near Calgary, Alberta, Canada on July 21, 2014. REUTERS/Todd Korol/File Photo
    Oil ticks up amid OPEC+ supply cut uncertainty

Related News

  • Washington’s new narrative for the global economy
  • Coronavirus origins still a mystery 3 years into pandemic
  • Covid remains a public health emergency, says WHO
  • China boost for flagging world economy looms as reopening starts
  • World economy's soft landing hopes boosted as 2023 begins

Features

Infographic: TBS

Inside Airbus's mega plan to develop the aviation ecosystem in Bangladesh

7m | Panorama
Unwinding poolside, she revels in self-care, her flawless complexion glowing under the gentle sun. Photo: Rony Rezaul. Model: Tangia Zaman Methila

Dive into Summer Style: Get Ready to Sizzle by the Pool

21h | Mode
Illustration: TBS

'Cybercriminals are creating new ways of hacking'

23h | Panorama
Under SmartMek’s package, farmers can have access to large agricultural machines such as combined harvesters.
Photo: TBS

SmartMek: Providing digitised services to the farmers through smart cards

1d | Panorama

More Videos from TBS

Turks are voting in presidential run-off

Turks are voting in presidential run-off

16h | TBS World
Temperature will surpass 1.5 degree by 2027

Temperature will surpass 1.5 degree by 2027

23h | TBS World
Dubai’s gigantic moon shaped mega resort

Dubai’s gigantic moon shaped mega resort

1d | TBS World
In an interview given to TBS Lt. Col. Mohammad Tajul Islam Chowdhury

In an interview given to TBS Lt. Col. Mohammad Tajul Islam Chowdhury

3d | TBS Stories

Most Read

1
End of zero tax!
NBR

End of zero tax!

2
Photo: TBS
Energy

Wind power feeds national grid for first time Friday

3
Photo: TBS
Bangladesh

Private helicopter service launched in Ctg

4
Malaysian ship docks at Mongla port with 926 luxurious cars
Bangladesh

Malaysian ship docks at Mongla port with 926 luxurious cars

5
Nagad builds hope on Tk510cr bond, incurs Tk625cr loss
Economy

Nagad builds hope on Tk510cr bond, incurs Tk625cr loss

6
Cenbank prints Tk70,000cr new money in 11 months to support nat'l budget
Budget

Cenbank prints Tk70,000cr new money in 11 months to support nat'l budget

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]