Stock markets across the globe have suffered historic losses in the first three months of the year due to the coronavirus crisis.
The Dow Jones and FTSE 100 saw their biggest quarterly drops since 1987, plunging 23% and 25% respectively. The S&P 500 lost 20% during the quarter, its worst since 2008.
As a result, Europe is heading for a significant economic downturn of up to -3% per month due to the COVID-19 pandemic.
Poul Thomsen, Director of the European Department at the International Monetary Fund said: “The recession is going to be bad. We don’t know how bad, but it will be bad. Look, the strategy here is to deliberately shut down big segments of the economy as a way of coming to grips with this crisis.
“These shutdowns are not accidents, it’s a deliberate act. And we are shutting down non-essential sectors that account for one-third of GDP. That means every month that this shutdown continues, there will be at least a loss of 3% of GDP just in those sectors. Then there are the wider implications on the wider economy.”