by Michael Snyder
The Economic Collapse Blog
Global economic conditions are really starting to deteriorate quite rapidly. Economists were projecting that Japan’s GDP would shrink by 3.8 percent on an annualized basis in the fourth quarter, but instead it greatly surpassed expectations by plunging 6.3 percent. If Japan’s GDP falls again during the first quarter of 2020, and thanks to the coronavirus outbreak that seems very likely, then the world’s third largest economy will officially be in a recession. But of course the outlook for China is even worse. At this point, economic activity in China has come to a standstill, and this has thrown global supply chains into a state of chaos. It certainly appears that the entire global economy will shrink during the first quarter, and that will be the very first time that has happened in more than a decade. And if this coronavirus outbreak continues to intensify in the months ahead, the economic consequences are going to be absolutely catastrophic.