Australia’s economy has suffered another disastrous blow as the coronavirus crisis pushes the world closer to recession.
Trading ended Wednesday down 3.6 percent, with the benchmark S&P/ASX 200 falling 213.7 points to 5,725.9 – its lowest level in 14 months.
It was down 20.05 percent from a record close of 7162.5 just two weeks ago, pushing the benchmark into “bear market” territory.
A bear market is when stocks fall 20 percent or more from recent highs and is an indicator of pessimism and concerned investors.
The ASX 200 (pictured) suffers a slump known as a “bear market” when stocks fall 20 percent or more
Any repeat of the 2008 financial crisis could soon see thousands of Australians out of work as companies are forced to close or lay off staff.
The market turmoil comes as Prime Minister Scott Morrison is set to announce a raft of economic stimulus measures to avert a recession.
But the economy is already suffering, with more bad news for the dollar, which hit a new low of 65.05 cents.
Big banks also suffered huge losses, with the Commonwealth Bank falling 6.6 percent and NAB 6.3 percent.
Westpac also took a hit, losing 5.3 percent and ANZ down 5.5 percent.
According to Sky News, the Australian government is about to announce its stimulus package, which will include $500 one-time payments to retirees and Newstart recipients.
A passenger wearing a mask and gloves arrives at Sydney Airport (pictured) on Wednesday morning as more travelers choose not to fly
This includes small business cash grants and laws granting tax breaks to small and medium-sized businesses.
The stimulus package will be worth around $20 billion, almost double the $10 billion previously speculated.
A passenger arrives at Sydney Airport on Wednesday (pictured) wearing a face mask
Kevin Hassett – a former economic adviser to US President Donald Trump – warned that the likelihood of a global recession is “nearly 100 percent”.
The federal government’s stimulus package aims to stave off an economic downturn with fresh memories of the 2008 financial crash that left 223,900 Australians jobless in six years.
On Wednesday, the coronavirus travel ban was extended to Italy after it had already been imposed on China, South Korea and Iran.
Qantas customers are being offered fee waivers, allowing passengers to change bookings for the remainder of this month for flights up to June 30.
Passengers may also be eligible for fare exemptions if they are no longer able to travel to a country like China due to immigration restrictions.
Qantas was the latest airline to cut flights on Tuesday as the travel industry grapples with a sharp drop in bookings amid the spread of the deadly COVID-19 virus.
The Australian stock market suffers a downturn thanks to the impact of the global coronavirus crisis (stock image)
