COVID-19 likely to cost global economy $1 trillion in 2020

The novel coronavirus outbreak has generated both demand and supply shocks reverberating across the global economy.Estimates suggest that Covid-19 is likely to cost the global economy 1 trillion dollars in 2020.

Germany has stepped up its efforts to contain the outbreak as Angela Merkel says that up to 70% of Germany could be infected.The government has sanctioned 1.13 billion dollars to fight Covid-19.

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On the other hand, the United States where the deadly coronavirus has claimed more than 31 lives has pledged 8.3 billion dollars as emergency aid.

The European Union will also be mobilising 28.2 billion dollars to counter the spread of the deadly infection.Meanwhile, Britain has sanctioned 39 billion dollars to fight the novel coronavirus.

The new finance minister Rishi Sunak along with the firepower of the bank of England has pledged to fight the impact of the deadly novel coronavirus in UK's budget.

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Canada has announced 1 billion dollars in funding to help health-care workers cope with the increasing number of new cases.

Hong Kong and Australia have also sanctioned billions as a stimulus for the relief package.The outbreak has triggered extreme fear in the financial markets.

Investors have had to face up to an unsettling reality. Unprecedented in modern times, which can tip the world into a recession.