Economic security

Some of the world's biggest economies are on the brink of recession

Markets closed out last week on an anxious note. It's not difficult to see why: the coronavirus continues to spread, and there are signs that some of the world's top economies could slide into recession as the outbreak compounds pre-existing weaknesses.
Take Japan: The world's third-largest economy shrank 1.6% in the fourth quarter of 2019 as the country absorbed the effects of a sales tax hike and a powerful typhoon. It was biggest contraction compared to the previous quarter since 2014.
Then there's Germany. The biggest economy in Europe ground to a halt right before the coronavirus outbreak set in, dragged down by the country's struggling factories. The closely-watched ZEW Indicator of Economic Sentiment in Germany decreased sharply for February, reflecting fears that the virus could hit world trade.
Bank of America economist Ethan Harris points to the number of smaller economies that are hurting, too. Hong Kong is in recession and Singapore could soon suffer a similar fate. Fourth quarter GDP data from Indonesia hit a three-year low, while Malaysia had its worst reading in a decade, he noted to clients on Friday.