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Global economic recession and labor sector decline forecasts

Global economic recession

As the negative impact of the Corona outbreak continues, expectations are growing that many of the world's economies will fall into recession, the inability of the global labor sectors to absorb jobs and the increasing number of unemployed.

The International Labour Organization (ILO) said in a statement, that an estimated 25 million people could lose their jobs due to weak global demand and deteriorating performance of global economies and companies due to the Corona epidemic around the world.

Which might result in a huge economic crisis, especially if the global governments did not move quickly enough to face these consequences.

The organization believes that international regulation and coordination is necessary to address these consequences, as happened in the 2008 financial crisis, otherwise the consequences for the employment sector and high unemployment rates will be severe.

In light of these pessimistic expectations, one of the research institutions came out with expectations stating that the German economy may fall into recession during the current year due to weak global demand and the contraction of economic growth rates by up to 4.5 percent to 9 percent during the year 2020.

Goldman Sachs also believes that a number of economies in Latin America may fall into recession, starting with Brazil and Mexico, due to the negative impact of the spread of the virus.

Goldman Sachs also lowered Brazil's growth forecast from 1.5 percent to -0.9 percent, and for Mexico it lowered its growth forecast from 0.6 percent to 1.6 percent.

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