A recession of the world economy in the current conditions is inevitable, but now the prospect of its quick recovery is becoming less and less likely.
It is reported by the American agency Bloomberg.
As noted in the media, there is every reason to believe that by the end of 2020, the pandemic of the coronavirus infection COVID-19 will not end. Thus, the basic scenario of analysts is called into question, according to which a rapid economic recovery was expected in the second half of the year.
Experts are redefining their position based on the epidemiological situation in Europe and the USA.
Their doubts are related to the fact that it is not possible to predict further trends in the spread of coronavirus. And although a return to the usual work cycle is quite possible, a number of restrictions can not be abolished in the short term. Thus, the restaurant and tourism business will still be “overboard”. Even the situation in China clearly shows that people are distrustful of visiting various institutions.
Given this, analysts do not exclude that many companies will ultimately be unable to fulfill their financial obligations to creditors, which will provoke a chain of bankruptcies.
“Based on past experience, it is clear that pandemics last for years, not months. Experts at Imperial College London believe that measures to the coronavirus can drag on for a year and a half”, – said economist Tom Orlik.