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Milen Velchev: We are entering an economic recession because of the coronavirus

In the economy, the influence of the coronavirus is already strongly felt by looking at the indicators of the exchange. On Monday it dropped 7% and climbed 5% on Monday. Such fluctuations are unprecedented. I expect more downturns on the exchange, commented former Finance Minister Milen Velchev on the BBC air.
There are other reasons to expect a global recession, but coronavirus is the main cause of the world's economic downturn. The leading economy will be in recession at least until the middle of the year, he said, noting that very rarely governments are directly to blame for the ionomic crises. They are natural phenomena of the world, but in this case the coronavirus is the main culprit.

Global production in almost all commodities is dispersed all over the world, but it is strongly influenced when there is a collapse of production in China, because this does not deliver parts for production to other countries and this interferes with the economy of the other countries, Velchev explained. According to him, to mitigate the effect of the recession can be relied on only fiscal policy, that is, spending more money by governments. The World Bank has no way of bringing the interest rate down any more because rates are already very low.

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