Covid-19 outbreak in EU, Canada could lead to economic recession, drop of property market rates

From the start of the last week, European are in a panic due to coronavirus. President of the European Commission said that the status of the Covid-19 outbreak went up to “high”. Almost every member of the EU got the citizen with coronavirus. The situation is very bad is Italy, especially in the northern part of the country. According to the latest news, more than 350 deaths in the country. Global economists believe that there would be a huge economic recession in the upcoming weeks.

The commissioner for the economy said that he is optimistic regarding economic growth. While China, the USA, and Canada are getting ready for an economic recession, Paolo Gentiloni believes that the EU economy will have V-shape. Paolo noted that the economy has slight issues right now while in upcoming weeks they are waiting for quick recovery.

North America predicts the same traits that happened in 2008 during the global financial crisis

Authorities of the USA and Canada predict the global economic recession. Yes, Paolo Gentiloni is optimistic but Americans believe in different scenarios. Federal Reserve of the USA has curt the benchmark US interest by half. It means that the USA is waiting for economic recession and they have limited all types of issues in the long-run. President of the USA said that he is happy with the decision and it will help the country to avoid a big impact.

Meanwhile, the Canadian government has cut the financial interest by 50 points meaning they have lowered economic growth prediction to 1.25%. Justin Trudeau is not concerned with the global economic recession at all. During the last interview, Prime Minister said that crisis is inevitable but the country will do everything to avoid future problems. Trudeau has talked about the impact of the digital economy on the country’s future. World leaders ask for everyone to focus more on digital transactions. Money may be the source of Covid-19 as China has already disinfected money banknotes to avoid Covid-19 spread. It’s believed Covid-19 is alive for a few hours on the surface of money banknotes. Canadian Prime minister said that the digital economy can help a country to go through recession successfully. Avoid banknotes is the first step and focusing more on digital currencies is the next one.

Justin Trudeau is happy with Canada’s digital economy. Trudeau’s government has allowed local business entities to receive digital currencies. Bitcoin and Ripple became the instant hit in the country. That decision helped digital casino platforms a lot. The government tested cryptocurrencies on digital gaming platforms and it turned out to be a successful decision. Online casinos in Сanada accepting real money implemented cryptocurrencies as gamers love playing with real money but digital currencies promise secure systems and instant transactions, especially during the coronavirus outbreak. Trudeau’s is proud of the digital gaming industry growth. After getting liberal decisions from the government, digital casino venues have seen a rise in the global market. Prime Minister believes that online gaming has a huge impact on the digital economy and it will help the country to successfully go through the global financial crisis.

The housing market can have a big hit in the EU along with Canada

According to official data, the price of houses increased by 4.1% in the EU in the third quarter of 2019. It means that the housing market was on the verge of big success. The Covid-19 outbreak happened at the worst time as economists are waiting for a big decrease in interest. Unlike Canada where country officials believe in more interest from buyers, the EU will have a rate drop by 5%. Coronavirus has already slowed down the Chinese property market, and economists are waiting for the same results in the EU.

The Canadian housing market is on the precipice of a breakthrough as mortgage rates drop, diverting the nation’s focus from COVID-19 issues to the market’s current state. The threat of economic recession, lowered interest rates imposed by the Bank of Canada may set off a massive decline in the market’s mortgage rates, and it possibly could attract more buyers to the market.

Economists believe that the most convenient time to buy a house in Canada is now, as most Canadians are more concerned with buying their dream home than worrying about issues concerning the COVID-19 outbreak or a recession.

Brisk buying season will be incited by several factors this year. These factors include the Government’s implementation of improved mortgage rules, as well as appealing mortgage rates offered by Canadian banks today.

The lowering of interest and mortgage rates are all excellent news for the whole market. The only thing that will change this current setup is if the COVID-19 virus takes an unprecedented turn for the worse or unemployment jumps immensely.