The Dismal Science of COVID-19

A crisis is often a three-act story: Accident. Relapse. Rehabilitation. The coronavirus crisis is one such crisis continuing its spread across the world, with more than 5.3 million confirmed cases in 188 countries. More than 340, 000 people have lost their lives. This report summarizes the existing news and reliable economic data that can guide any forecast. Further, it explains the world sliding in a deep recessionary period and explains the opportunities that this pandemic brings. The report then outlines some possible recessionary scenarios and their impact on economic prospects. Within this, the report reviews that, depending on the economic structure and resistance of each country, some will be more overwhelmed than others and there will be a very irregular impact across different sectors. With different policies being adopted around the world, the report discusses the impact of negative interest rates. The report throws light on the uncertainty about the virus and how it bars us from any concrete finding and limits our trust in economic data. Though the geopolitical ramifications are yet to fully unfold as there is large uncertainty about the virus and its reach, this report discusses global risks that could potentially uproot and disintegrate the world economy with special emphasis on U. S. -Iran relations. The report also provides a sneak peek into the state of major economic indicators and their importance.