www射-国产免费一级-欧美福利-亚洲成人福利-成人一区在线观看-亚州成人

Global EditionASIA 中文雙語Fran?ais
Opinion
Home / Opinion / Colin Speakman

US economy is bound to shrink further

By Colin Speakman | chinadaily.com.cn | Updated: 2020-06-28 10:53
Share
Share - WeChat
A nurse wearing personal protective equipment watches an ambulance driving away outside of Elmhurst Hospital during the ongoing outbreak of the coronavirus disease (COVID-19) in the Queens borough of New York, US, April 20, 2020. [Photo/Agencies]

The health of the American economy is important to the global economy. Right now, the US economy is getting sicker. This is both in terms of the shrinkage in output and the high level of COVID-19 cases.

We already know April IMF forecasts predicted a 6 percent decline in US GDP this year and it is almost certain, as we reach mid-year, that this forecast will be revised higher. For the global economy, the IMF already forecast a deeper global recession last week, citing the impact of business closures, social distancing measures and travel restrictions in force in most countries leading to a predicted total output loss of $12 trillion through the end of 2021. Only China, among the major economies, is expected to achieve positive economic growth.

The hit to the global economy is of course bad news for the US economy, but the worse news is the recent upturn in cases of, and deaths from, the virus in America. Other big economies and many smaller ones have passed their peak of infections, flattened the curve, protected their medical capacity and began their loosening of lockdowns. These countries are alert to the risk of a second wave and prepared to reimpose lockdowns on local clusters, and are confident they have testing and tracing measures in place, along with space in hospitals if needed.

It still remains true not all consumers are ready to resume frequent use of services such as restaurants, cinemas and airports — confidence in hygiene measures and trust in the advice of scientists guiding government policy are important, as is confidence in their financial well-being to support a resumption of household spending. The timing has been important, as many countries cannot afford to continue the high levels of support for ailing businesses and out of work citizens much into the second half of the year.

All the above issues apply in principle to the US. However, there are crucial differences sending that economy into a downward spiral. In the US, the pandemic is still in an upward first wave and it is unclear when that will be flattened. Even when it is, it could only occur by following the same strong lockdowns other countries successfully used - anything less would have catastrophic results for the spread of infection. Thus, the US economy is going to have a poor third quarter economically and little time to recover this year.

The problem for the US has been a lack of a national policy on containment, and individual state governors have sent different messages about how seriously virus prevention guidelines should be followed. States which were badly hit and took strong measures have begun to emerge slowly from the crisis, but many other states have seen alarming explosions in cases by being too open.

Economic outcomes also depend on the behaviour of economic actors, and significant groups of US citizens have been unwilling to accept government control and refused to wear masks or to maintain social distancing- statistics show the numbers of younger people infected has grown rapidly as they behaved without fear of infection. Dr. Anthony Fauci from the US Government Coronavirus Task Force summed it up well last week, saying “the people can be either part of the solution or part of the problem”, reminding them they have “a societal responsibility…we are part of the process”.

The US situation has resulted in a fear of imported cases if other countries allowed travel by US citizens from their homeland - the EU is sure to ban such travel after further reopening in July, and Asian counties are unlikely to welcome US passport holders anytime soon. This is of course terrible news for the health of US airlines, who badly need international travelers. Many of the hotel chains that might welcome these Americans are also US-owned multinational companies.

The global economy will have to get by without economic stimulus from a wounded US economy, which will need to take its medicine to get into better shape towards the year’s end. That is the harsh reality.

Colin Speakman is an economist and an international educator with CAPA: The Global Education Network.

The opinions expressed here are those of the writer and do not represent the views of China Daily and China Daily website.

Most Viewed in 24 Hours
Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
主站蜘蛛池模板: 亚洲一级网站 | 国产一区二区fc2ppv在线播放 | 久久福利网站 | 午夜宅男在线永久免费观看网 | 亚洲日本aⅴ片在线观看香蕉 | 色视频www在线播放国产人成 | v片视频 | 欧美成人三级视频 | 欧美人交性视频在线香蕉 | 欧美日韩一区二区高清视 | 日本三级2021最新理论在线观看 | 99国产精品热久久久久久夜夜嗨 | 亚洲国产最新在线一区二区 | 亚洲精品综合欧美一区二区三区 | 欧美啊啊啊 | 偷柏自拍亚洲欧美综合在线图 | 玖玖精品在线 | 国产精品日韩欧美一区二区三区 | 伊人久久青草青青综合 | 免费女人18毛片a级毛片视频 | 欧美精品在线免费观看 | 久久精品精品 | 亚洲一区二区在线视频 | 国产一国产a一级毛片 | 欧美一区二区在线免费观看 | 国产xh98hx在线观看 | 中文精品久久久久国产不卡 | 爆操巨乳美女 | 国产精品久久福利网站 | 国产亚洲人成a在线v网站 | 国产精品久久久久久久久 | 国产第一福利影院 | 日本成年人视频网站 | 97capcom超频在线 | 久草免费在线视频 | 日韩欧美国产成人 | 国产免费高清 | 99精品久久99久久久久久 | 欧美一区二区三区久久综合 | 京东一热本色道久久爱 | 欧美国产成人免费观看永久视频 |