Since 2015, most of emerging market and developed market have experienced an economic contraction, Malaysian economy too was not spared from this catastrophic event. Malaysian economy was badly affected during those time. Thanks to oil price crashed in 3rd quater of 2014 due to surplus of crude oil from shale oil boom in USA.
Purchasing Manager’s Index in April for a host of countries which are taking preventive measures for instance lockdowns or movement restriction to combat COVID-19 globally are very low. Contracting purchasing manager’s index to the lowest historic level causes their economy behave badly.
As you can see on the graph as shown below, all of these countries were experiencing contraction. Based on these numbers, only China is within touching distance of expansion at 49.4 index. This shows that economy globally is undergoing depressed cycle.
Purchasing Managers’ Index, (PMI™) series are monthly economic surveys of carefully selected companies. This index provide an advance signal of what is really happening in the private sector economy by tracking variables such as output, new orders, employment and prices across key sectors.
Oil price keep on sliding today as storage capacity is about to reach maximum level therefore Indonesia try to seek for tankers to store refined fuels at sea as it seeks to take advantage of plunging prices. This situation is so bad for oil exporting countries who rely so much on their crude oil export.
There is no official definition of recession, but there is general recognition that the term refers to a period of decline in economic activity . Recession is a period when economic output contracts for 2 straight quarters. Kristalina Georgieva, Managing Director of the International Monetary Fund, says the world economy is that could be worse than the 2009 downturn .
Covid-19 has causes a lot of pain to many of us. From impacting national revenue, restrictive movement, salary cut and down to retrenchment. As for Malaysia, this is the 2nd MCO extension. It will take effect from April 15th to 28th for another 2 weeks. MCO was introduced in March 18th. Then it was extended for the 1st time from April 1st to 14th. Basically Malaysians have been locked down in their peaceful house for about 3 weeks nowadays.