Abstract Global economy because of COVID-19 has tanked to historical lows. It is not the first time in the world history that global community is bracing for a pandemic. COVID-19 started in Wuhan, the global epicentre of both—the virus as well as the economic bustle and flurry. After the few days of proliferation of the virus, busy streets of Wuhan were back to deserted scenes. China is currently the production house of the world. The dangers to the health sector of the countries is definitely under tremendous pressure but more worryingly, it is threatening world economy into recession. US Federal Reserve has gone for an emergency rate-cut of half percentage point. This is the biggest since 2008 financial crises. But the step seems more a knee-jerk reaction out of compulsion rather than a mature policy decision.