The coronavirus epidemic is leading to an unprecedented economic and financial crisis. While it was expected to increase by 3%, global growth should decrease by 4 to 5% in 2020, which will cause an explosion in unemployment. The financial markets have collapsed and liquidity has disappeared.
For the second time in twelve years, developed countries have no other solution than to commit 20 to 50% of their GDP to reassure a major shock. Never before in economic policy has such a sum been mobilized with such breadth and speed.
Read also: Coronavirus: is the economic crisis that is starting comparable to 1929, as Bruno Le Maire says?
States have put in place massive budgetary aid for households, businesses, communities and the health system, while postponing or partially canceling tax and social charges. The central banks adopted zero or negative rates without delay and launched vast plans to buy back public and private debts.
Economically, the coronavirus crisis marks final death
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