Coronavirus Live Updates: Governors Push Trump Back To Allow Reopening

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“These measures are unlikely to prevent irreversible credit deterioration and, in many cases, outright default on smaller, weaker businesses with speculative ratings.”

In 2020, the I.M.F. projects that the US economy will contract by 5.9%. In the euro area, it will decrease by 7.5%, under the effect of sharp declines in Italy and Spain.

Emerging markets and developing economies will not be spared, but in some cases they are doing better. In China, where the virus originates and where draconian measures have been imposed to combat it, growth is expected to slow at a rate of 1.2% this year. Growth in India is expected to slow to 1.9%.

The fund calls on governments to invest to support their health care systems and keep workers connected to their jobs during the closings so that economic activity can resume when the virus recedes.

“This is a crisis like no other, and there is considerable uncertainty about its impact on the lives and livelihoods of people,” said Gopinath.

Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said that the economic damage should not be wiped out quickly, especially if people continue to worry about contracting the virus.

“We know that after the Great Depression, people carried the scars of this experience with them for many, many years,” Kashkari said in an interview with TODAY, noting that in the rebound, people will have to feel comfortable going out again. “I think the longer it lasts, the more people will be affected by it, the longer the recovery will be.”

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