Thread by @ChinaFinance40

Although comparing the impact of #COVID19 with Great Depression is overly pessimistic, it serves to remind national authorities to be alert to the risks of a very unlikely scenario and to strengthen international cooperation, according to Zhu Jun: new.cf40.org.cn/uploads/202004…

There is only one widely recognized #GreatDepression , which happened in 1929-1933. Though the global economy suffered a "great recession" after the 2008 financial crisis, it did not qualify as a "Great Depression".

Whether the duration of the economic downturn, reduction in output and the rise in unemployment can reach the standard of "Great Depression" remains under observation:

If national governments can work together to fight against the pandemic, and can eventually effectively control the outbreak while underpinning the global economy, the impact of the outbreak on the global economy could still be short-term and controllable;

However, if the pandemic continues to grow out of control, while real economy deteriorates and potential financial risks materialize, a "Great Depression" might in fact occur.

The international community should be fully alert to the risks of economic recession and systemic financial risks, and all parties should strengthen cooperation to jointly cope with these challenges.