Unprecedented economic impact
US markets are bracing for ‘free fall’ this week as the death toll from Covid-19 looks set to ravage the country’s infrastructure this week.
New York has led the US in terms of the number of cases, with many reports from doctors in the city that hospitals are now akin to those in warzones.
“We’re asking people to stay home to invest in national health, and we’re asking them to use the unemployment insurance program in order to get the transfers they need to be able to pay bills while they’re at home, while they’re not able to work because health authorities are trying to get the virus under control,” St. Louis Federal Reserve President James Bullard said.
The US death toll has now passed the 10,000 mark, as economists predict deep pain for the nation’s economy in the weeks to come. The speed which the coronavirus has hit the country has caused many experts to predict a death toll in the hundreds of thousands with president Trump stating that it would be a ‘very good job’ if authorities could limit the damage to just 100,000.
“The virus’s death toll in the US hit more than 3,100 on March 30, exceeding the 2,977 victims who were killed in the World Trade Center, the Pentagon, and four hijacked planes on September 11, Abigail Weinberg, Digital Media Fellow at Mother Jones, notes adding that “The impact of September 11 went far beyond its initial death toll… In the three months following the attack, New York City’s economy lost 143,000 jobs each month and $2.8 billion in wages”
US faces three-year recovery
The World Economic Forum estimates that it could take three years for the US economy to recover from COVID-19.
“The economic impact in the US, however, could exceed anything experienced since the end of World War II. The industries hardest hit by COVID-19, including commercial aerospace, travel and insurance, may see a slower recovery. Within the travel sector, the shock to immediate demand is estimated to be five-to-six times greater than following the terror attacks of 11 September 2001 – though recovery may be quicker for domestic travel. The crisis has also amplified existing challenges or vulnerabilities in the aerospace and automotive industries, which will affect their recovery rates.,” a WEF spokesperson commented.