The global economy is not able to gain momentum because the coronavirus resurgence poses a threat to the fragile recovery. In the meantime, the global community is alarmed by growing rates of the COVID-19 cases worldwide. So, governments in many countries are forced to re-impose restrictive measures to cushion national economies from the looming second pandemic wave.
Israel and Indonesia were among the first to go on red alert. The authorities there announced a total shutdown. Australia decided to close educational institutions. The UK decided to introduce restrictions on businesses. Investors are worried that the worst is yet to come. With such rampant infection rates, the global economy is facing bleak prospects. Not long ago, experts were inspired by the green shoots of recovery. Now even optimists are braced for the second crisis. Importantly, those countries which suffered the most in the first pandemic wave such as Italy, Spain, and France have to deal with a sharp increase in infection cases. The negative news instantly affected stock markets. In late September, global stocks stalled their stellar rally. Investors admit they have to abandon hopes for the rapid economic recovery amid tough lockdown measures.
Investors believe that most countries have learned a lesson from massive lockdown mistakes so that authorities will cope with sectoral restrictions, thus avoiding a total shutdown of national economies. Nevertheless, experts warn about a new global economic crisis if countries venture into the second lockdown.
