A phenomenon already under stress from an interplay of inequality and politics will suffer further as Covid-19 disrupts life
It has been a month of jitters, tremors and shocks for the world economy. 9 March was yet another Black Monday. Stock markets crashed worldwide, as their respective indices plunged 5-10%, wiping out trillions of dollars in wealth, the worst since 2008. Oil prices plummeted to $33 per barrel, suggesting a price war among oil-exporting countries. During 2020, there has already been a sharp contraction in international trade flows. There is also a serious disruption in integrated global production networks. Just-in-time production systems are paralysed with intermediates and components made in China or East Asia no longer available. GDP growth has slowed down everywhere.