The global economy is confronting one of its greatest crises, with forecasts showing it's likely to shrink for the first time in 11 years as the coronavirus pandemic wreaks havoc on businesses across the world.

City-wide lockdowns and international travel restrictions have decimated demand and dealt a crushing blow to the service sector and most other industries.

The shock has been particularly tough for Japan's tourism industry, which went from boom to bust virtually overnight. Visitor numbers for February were down from the same month last year by nearly 60 percent -- a record.

In March, sales at one department store plummeted more than 40 percent year-on-year. It was a similar story at many businesses.

For companies in Japan, the timing couldn't have been worse. Japan's fiscal year ends in March. So, too, does the business year for many firms. The impact of the pandemic on their end-of-year book-keeping has been profound.

So dire is the situation that from February to mid-March, private and government-affiliated financial institutions received more than 400,000 inquiries from companies about applying for loans.

In the weeks after the coronavirus emerged in China's Hubei Province, it was the manufacturing industry that suffered. Companies temporarily closed plants throughout China, causing major disruptions to the global supply chain. Soon, shock waves were sweeping through other industries, forcing financial institutions to put together massive stimulus packages to keep cash running through the real economy.

Toyama Kazuhiko, a managing partner of Industrial Growth Platform, has extensive experience in rehabilitating failed businesses. He warns that big companies could now face "a second wave" of damage as sales of durable products dry up.

The auto industry is one of many that could bear witness to Toyama's prediction in the months ahead. Automakers are expected to suspend work at factories in Japan and other parts of Asia and Europe as demand for vehicles plummets. Even Toyota Motor, one of the world's most successful car makers, is bracing for pain. The company has applied to Japanese banks for a new credit line totaling one trillion yen, or more than nine billion dollars.