The MENA Research Center (MESC) said the Coronavirus (COVID-19) outbreak has caused noticeable disruptions in the global economy, threatening some countries with financial difficulties.
In its report, the centre said the global gross domestic product (GDP) will shrink by 1.3%, equivalent to $1.1trn due to the pandemic.
The COVID-19 pandemic has negatively affected various economic activities, which is evident through the slowdown in consumption of basic commodities, demand for oil, and spending in the tourism sector, which coincided with the official restrictions imposed on travel and movement.
Economic observers warned, according to the report, that the negative repercussions of Coronavirus may lead to the bankruptcy of some countries with the decline in global markets and the growing fears of investors from the spread of the virus to more countries.
The virus has caused a state of panic in different areas, as it disrupted the daily life of millions of people. It has also resulted in a decline in indicators of the global economy and stopping travel between countries, as well as cancelling dozens of political, sports, and cultural activities.
Despite all the preventive measures and emergency plans adopted by world governments, they have not yet succeeded in stopping the spread of the virus, which observers see as the most serious global epidemic in the third millennium. The World Health Organization (WHO) announced Wednesday that the Coronavirus has become a pandemic worldwide.
Coronavirus records daily infection and death cases in various countries. It has recorded nearly 134,000 infection cases and more than 5,040 deaths so far. The virus has spread to a number of senior officials and international leaders. For example, Sophie Gregoire Trudeau, the wife of Canadian prime minister, has tested positive for the virus and is now in quarantine, while PM Justin Trudeau announced work from home.
Moreover, Norwegian King Harald V and Queen Sofia were both in home quarantine. Both French Minister of Culture Franck Riester and British Minister of Health Nadine Doris were diagnosed with the Coronavirus. Additionally, Australian Interior Minister Peter Dutton and Brazilian Communications Minister Fabio Wagon Martin, who recently met with US President Donald Trump, were infected.
It seems that the situation has become more dangerous in Europe. WHO announced on Friday that Europe is now the main focuses of the Coronavirus, noting that the number of cases recorded daily exceeds the numbers recorded in China during the peak of the disease.
European countries have tightened their measures to curb the spread of the Coronavirus, as several European governments announced new decisions to shut down educational institutions and some public places, and strengthen quarantine measures.
On Friday, Trump declared a state of emergency in the country and closed the borders to counter the disease, noting that his country would stop the entry of Europeans for 30 days.
Russia also announced that starting Monday, it will reduce the number of flights with the European Union countries in an attempt to contain the Coronavirus pandemic.