Coronavirus recession facts for kids
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Map showing real GDP growth rates in 2020, as projected by the International Monetary Fund
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| Date | 20 February 2020 – present |
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| Type | Global recession |
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The coronavirus recession, also known as the Great Lockdown or Great Shutdown, is an ongoing major global economic recession affecting the world economy in early 2020 during the COVID-19 pandemic.
Background
The recession has caused the largest economic downturn since the Great Depression. On 14 April 2020, the International Monetary Fund (IMF) reported that all of the G7 nations had already entered or were entering into what was called a "deep recession". The IMF has stated that the economic decline is "far worse" than that of the Great Recession in 2009.
The numbers
The pandemic has led to more than a third of the world's population being placed on lockdown to stop the spread of COVID-19. This has caused severe economic downfalls for economies across the world, following soon after a global economic slowdown during 2019 that saw a lowering numbers in stock markets worldwide.
The United Nations (UN) predicted in April 2020 that global unemployment will wipe out 6.7 per cent of working hours globally in the second quarter of 2020—equivalent to 195 million full-time workers.
Other effects
The recession saw the fall of the price of oil caused by the 2020 Russia–Saudi Arabia oil price war, the collapse of the tourism industry, hospitality industry, energy industry and a large decrease in consumer activity.
Global stock markets crashed around 20 to 30% during late February and March 2020. During the crash, global stock markets had many swings, mainly due to uncertainty in the markets.
Images for kids
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Scanning electron microscope image of SARS-CoV-2 (centre, yellow)
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The Federal Reserve balance sheet expanded greatly through quantitative easing on multiple occurrences between 2008 and mid-2020. During September 2019, there was a spike in the overnight repo interest rate, which caused the Federal Reserve to recommence quantitative easing; the balance sheet expanded parabolically after the pandemic declaration.
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US non-farm payrolls, 2005 – January 2022
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A nearly empty flight from Beijing to Los Angeles during the pandemic
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Boarded-up storefronts at New York City's Saks Fifth Avenue during the George Floyd protests
See also
In Spanish: Recesión por la pandemia de COVID-19 para niños
