Coronavirus pandemic could cost the global economy $82 trillion
Mnuchin: CARES Act has poured $3T into economy
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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.
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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.
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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).
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"The new calculations on GDP@Risk 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.
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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.
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