Financial experts are now warning that coronavirus could result in a recession in Canada.

Royal Bank of Canada predicts a decline of 2.5 per cent in the second quarter and 0.8 per cent in the third quarter. Two consecutive quarters of negative growth is considered a recession.

RBC called the federal government's support measures to mitigate the impact of the virus "relatively limited," despite reassurances from Finance Minister Bill Morneau that the government will "protect the health of Canadians."

We are seeing volatility in the markets due to COVID-19. In the face of this uncertainty, we will continue to protect the health of Canadians and our economy. I want to tell all Canadians: we have your back. pic.twitter.com/ZY87P5zhB1

— Bill Morneau (@Bill_Morneau) March 12, 2020

The bank's economic forecast assumes that the virus will run its course by summertime and accounts for the persistent low oil prices.

CIBC echoed RBC's comments, saying that the economy will sharply contract before bouncing back during the final three months of the year. They added that "confidence won't roar back until we have the virus under control."

The banks' predictions are somewhat unsurprising, given that the Toronto Stock Exchange had its worst day on Thursday since 1940 due to the COVID-19 outbreak.

A Canadian laboratory is now in the animal testing stage of a COVID-19 vaccine, but it is likely that the vaccine won't be ready for another 18 months.