- By Richard Lin, CFA, NASDAQ Global Index Research
The COVID-19 global pandemic is definitely one of the most phenomenal black-swan events in the 21st century’s history. It has now infected millions of people from 188 countries and killed at least 734 thousand people.1 Europe and US, with rapid rising confirmed cases and death tolls, became the emerging epicenters and many metropolitan areas declared emergencies and demanded lockdowns. This in turn has negatively impacted the global economy. The International Monetary Fund (IMF) has already seen that the slowdown of production and consumption activities will drag the global economy to a recession at least the level of global financial crisis of 2008.2 Some more pessimistic economists even compare the current economic downturn to a scale of the great depression of 1929.3
After six months since World Health Organization (WHO) formally declared the coronavirus outbreak a global pandemic on March 11, scientists, health workers, local governments and health organizations around the world have made incredible effects to curtail the spread of the virus. Despite the astonishing large cumulative global infection cases, the daily new cases in many countries and regions have already significantly lowered4 since doctors are now more familiar with the virus and many effective restrictions have been imposed.
1. WHO COVID-19 Overview as of August 10, 2020(https://covid19.who.int/)