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Re: ridgetop post# 104

Monday, 04/27/2020 9:45:52 AM

Monday, April 27, 2020 9:45:52 AM

Post# of 138
This just out, it might be time to base our economies on something besides fossil fuels.

https://www.bloomberg.com/news/articles/2020-04-27/global-6-trillion-slump-may-be-optimistic-bloomberg-economics?srnd=premium

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Economics
Global $6 Trillion Slump May Be Optimistic, Economists Warn
By Catherine Bosley
April 27, 2020, 5:01 AM EDT
Advanced economies face worst crisis since Great Depression
Global economic output to shrink 4%; U.S. GDP to slump 6.4%


Busy Week for World’s Biggest Central Banks
Busy Week for World’s Biggest Central Banks

The coronavirus pandemic will cause the global economy to shrink 4% in 2020, according to a Bloomberg Economics estimate that assumes a recovery starts in the second half of the year.

The economy has “entered a downturn of unprecedented speed and severity, with most advanced economies facing their weakest performance since the Great Depression,” Tom Orlik and Jamie Rush wrote in a report. “Relative to expectations at the start of the year, the cost of lost output is more than $6 trillion,” the wrote.

That a contraction of this magnitude is based on “optimistic assumptions about both the outbreak and the recovery” underscores the challenge facing policy makers trying to cushion the blow of the pandemic. Under such scenario, U.S. gross domestic product will shrink 6.4%, while euro area GDP is set to contract 8.1%. Japan will shrink 4%, while China will expand at the slowest pace on record.


World Outlook
Global gross domestic product is set to contract 4% this year

Source: Bloomberg Economics

“Downside risks are significant,” Orlik and Rush wrote. As governments move to ease nationwide lockdowns, the risk of a second wave of infections could deepen the contraction to 5.6%. If stimulus is insufficient, output could plummet 7.2%.


But unlike the Asian crisis in 1997 and the global recession in 2009, the current shock isn’t caused by fundamental economic and financial imbalances. This means that countries that have mobilized enough stimulus to compensate for the lost income could stage a swift recovery, the economists wrote.

“Governments should err on the side of doing too much stimulus. In the end, the cost of doing too little would be higher.”

Is It Enough? Tracking Major Economies’ Stimulus Measures

— With assistance by Zoe Schneeweiss


these posts are not intended to be a buy or a sell recomendation always do your own dd.

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