The adverse consequences of coronavirus are being felt globally. Governments and central banks have responded aggressively with expensive fiscal and as well as monetary policy. However, healthy life has been paralyzed. No one argues that the world is in recession, or that it is rapidly heading towards. The right question is how hard and how deep it will impact. Nepal will obviously not remain immune to the negative recession of this pandemic. In fact, this may be the time for policymakers to devise a plan for our government to act mindfully.
Before the virus first appeared in Wuhan, China, last December, the global economy had just resisted a trade war between the United States and China. Germany was already on the brink of recession. In the following two months, Chinese manufacturing output fell 15.7 per cent from the same period last year. Auto manufacturers in both the US and USA as well as in Europe they have inactive plants, after similar actions in China, South Korea and Japan. Visitors to Japan fell 58 per cent in February, the most since the 2011 earthquake there. Related stories are now easier to find in all countries and regions.