https://www.nytimes.com/2020/03/02/business/economy/global-economy-coronavirus.html
The Organization for Economic Cooperation and Development says that economic growth will be cut in half as the coronavirus spreads to the world outside of China. It is hard to tell because of our lack of information on the effect on the businesses in China. The predicted decrease in growth in the United States is 1.5%. Recessions are looming all over the world. It is suggested by the OECD for countries to invest in health care early and start preparing ahead of time. Some of these preparations include decreasing unnecessary travel, shorter workdays, delay tax days for small businesses, lowering interest rates, and stronger government policies.
What are some other preventative measures that can help our economy once the recession and coronavirus hits?
2 comments:
Since there is a lot of recent talk on how the virus might be due to the winter and only impacting colder areas, I think economies that are being faced with negative growth can gear up towards greater healthcare and stabilizing financial markets, but also taking into account that this will probably be a seasonal phenomena and that any measures taken should be flexible to change in the future.
It will be interesting to see what the global growth forecast look like now as the disease has progressed even more. Most likely they will continue to plummet until this is slowed down somewhat. As of now though, it will be interesting to see if there is ever an expected contraction.
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