COVID-19 disrupts business, economy and supply chains
Global recession is now being expected by most forecasters
Oil slump continues into March; Brent price down to USD 27 a barrel from USD 66 at start of 2020
COVID-19 Disrupts Sri Lankan Economy: The economy and business sectors has witnessed a significant disruption due to the outbreak of COVID-19. The following developments have taken place since the outbreak:
A Global recession is forecasted for 2020: Analysts and several international agencies, expect that the global economy will grow by less than 2% during 2020, amidst the COVID-19 pandemic. The expectation is for negative growth in the second and third quarter in 2020.
Oil prices continue to fall: During March, crude oil prices continued its sharp fall. Decline in prices was mainly driven by worries on long-term demand destruction amidst COVID-19 outbreak. Brent oil has declined from USD 66 a barrel to USD 27 a barrel by 24 March 2020.
Services trade growth weakens due to COVID-19: WTO’s Service Trade Barometer indicated that global service trade growth which weakened towards the end of 2019 would continue into Q1-2020 as COVID-19 hits global economic activity.
Global PMI records the steepest contraction in over a decade: The global manufacturing PMI decreased by 3.2 index points in February 2020, on a M-o-M basis, which is the steepest contraction in over a decade as COVID-19 outbreak hit supply chains and demand.