Coronavirus pandemic could cost the global economy $82 trillion
Mnuchin: CARES Act has poured $3T into economy
Treasury Secretary Steven Mnuchin highlights the Main Street Lending Program and the overall impact the CARES Act has had on small businesses throughout the United States.
Get all the latest news on coronavirus and more delivered daily to your inbox. Sign up here.
Continue Reading Below
The coronavirus pandemic has dragged most countries into a severe recession that could cost the global economy up to $82 trillion, according to a grim report released this week.
US ECONOMIC RECOVERY FROM CORONAVIRUS CRISIS EXPECTED TO BE SLOW, CBO SAYS
Recent findings published by the Centre for Risk Studies at the University of Cambridge Judge Business School estimated the potential economic toll of the virus outbreak could range from what it called an "optimistic loss" of $3.3 trillion to $82 trillion over the next five years.
FED'S POWELL WARNS CORONAVIRUS RECOVERY COULD STRETCH THROUGH END OF 2021
The combined GDP for the nation's 19 biggest economies was $69.2 trillion in 2019.
The center's consensus projection was a loss of roughly $26.8 trillion, or 5.3 percent, of global GDP in the next half-decade.
In the U.S., the crisis — and subsequent economic catastrophe — will cost the nation between $550 billion to $19.9 trillion (13.6 percent of GDP), while the Chinese economy could plunge between $1.03 trillion to $19.2 trillion (16.5 percent of GDP).
MNUCHIN: PROLONGED SHUTDOWNS COULD CAUSE 'PERMANENT' ECONOMIC DAMAGE
"The new calculations on [email protected] from the pandemic are not forecasts, but rather are projections based on various plausible scenarios that could unfold in the next five years related to the economic impact of COVID-19," Andrew Coburn, the center's chief scientist, said.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
In the U.S., the virus brought a broad swath of the economy to a grinding halt for more than a month. The latest government projections have forecast the nation's GDP will plummet 38 percent on an annualized basis in the second quarter of the year.
"The sharp downturn in economic activity and the rapid deterioration in labor market conditions are expected to have severe negative effects — both immediately and potentially over the long term —on many workers, households, and communities," the Congressional Budget Office said in a new report released this week.
Source: Read Full Article