Nigel Greene, the CEO of deVere Group, one of the world's largest financial advisory organisations, has warned investors to take steps now to build and protect their wealth against the growing risk of a coronavirus-driven short, sharp global recession.
Greene's warning comes as confirmed cases of coronavirus continue to rise globally and, at the same time, governments and central banks around the world are taking increasingly aggressive measures to try and combat the economic impact of the outbreak.
These include, on 5 March, the US Federal Reserve announcing that is intends to cut interest rates by half a percentage point.
The Bank of England is drafting an action plan to deliver a "powerful and timely" response to the coronavirus. On 4 March it was reported by The Guardian that the Bank of England's incoming governor, Andrew Bailey, called on the government to consider emergency financial support to British companies suffering as a result of coronavirus.
Bailey also warned that there was limited room for the central bank to cut interest rates, and was quoted as saying: "We are collectively now going to have to provide some form of supply chain finance in the not too distant future."
In his recent warning, Greene said that the outbreak of coronavirus is developiing and evolving quickly, and that "no one accurately can predict what will be the economic fallout".
However, he added, "I believe that based on what we currently know, the risk of a coronavirus-driven short, sharp global recession this year is significantly growing. The epidemic has already dented anaemic global economic growth this year and it can be expected to slow further, then contract, as the fear of the virus takes hold.”
Greene explained that the outbreak of coronavirus had already sent the stock market "into bouts of volatility not seen since the 2008 financial crisis, severely disrupted global supply chains, shuttered factories, grounded flights, closed attractions and cancelled major events."
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