The Corona virus has devastated the global economy. It is not possible to say how long the crisis will last. Experts
The Corona virus has devastated the global economy. It is not possible to say how long the crisis will last. Experts
If the lockdown continues, businesses will collapse and the world will face historic unemployment. Reports
NEW YORK (International Press Agency. May 12, 2020) As countries around the world try to revive their economies, the easing of lockdowns is beginning to be seen everywhere. F) estimates that the next global economy will shrink by 3%, which is in stark contrast to its previous prediction that the world economy will grow by 3%.
The world is preparing for the biggest global crisis since the Great Depression of the 1930s, but how long will this crisis last and how will it be overcome? Many countries define recession in two consecutive quarters. Decrease in national production (GDP). According to the National Bureau of Economic Research in the United States, the recession was a sharp decline in economic activity that lasted for several months and was reflected in GDP as well as real income, unemployment, industrial production, and the retail sector.
The IMF estimates that we are currently experiencing the worst economic effects of the corona virus in the second quarter of 2020. He hopes that conditions will improve in the second half of the year and that businesses will begin to open slowly. If measures like Down continue, businesses will end and people will lose their jobs. This recession can be doubly serious and long and even more difficult to get out of if we go into a V, U, W, or L shaped recession.
Economists describe the different types of recessions through these English letters. These letters describe the shape of the graph of GDP. We call the V-type recession the best. It slows down the economy. Reaches its lowest level and soon the economy begins to improve. Jose Tsada, a professor at the Catholic University of Chile, says the idea is that our economy will return to normal and the recession will be short-lived, even if it takes a few quarters to control the epidemic. If successful, we will see a V-shaped recession as you begin to end the lockdown and national production begins to grow back.
Paul Grunwald, chief economist at S&P Global Ratings in New York, says that if social distance measures are eliminated soon or soon become a vaccine or cure, we will soon be back on track. Predicts economic slowdown of up to 9% in the second quarter of 2020. At this level, he thinks it will take a long time to get out of this recession. According to S&P, 2020 will see an overall economic decline of 2.4% and then an increase of 5.9% in 2021. Paul Greenwald says that we What we are seeing now is probably a U shape or a wide U in which we will come out of the effects of the crisis but it will take time.
Elena Dogar, associate managing director of Moody's Investors Services in New York, agrees that the Corona virus will not leave the economy in 2021. She says the economic activity we saw in the first half of this year We will not be able to make up for the loss in the second half, but they are positive about the news coming from China, where the slowdown in the economy and then the recovery has begun a quarter of a century earlier than in the rest of the world. Lockdown has eased. Factories have started operating. There are reports in various sectors that the production capacity has increased by 45 to 70 percent. Hy'dusry governments have returned to take immediate steps to bolster the economy.
Elena Dogar says that when measures such as lockdown are removed and activities resume, some conditions will improve in the second half of the year. Paul Greenwald says there is no vaccine or cure at the moment and that is why we have problems. Governments may end measures like lockdown and try to support the economy, but in the event of a second wave of corona virus, these measures will be reversed and the economy will be dealt another blow. Another downturn in the economy could be the so-called W-shape.
Professor Jose Tsada says that in such a situation, the crisis can only finally come out after a while, during which the economy improves but then starts to fall.
Paul Greenwald says that if we continue to take steps such as social distance, it will take a little longer for the economy to return to its normal level. Many people are also questioning whether the corona virus has set a new level of economic activity in the world. In the L-shaped recession, the economy recovers from a sharp fall but does not return to its old level and returns to a lower level.
Professor Jose Tsada says that in such a situation, it will not be a recession, but a permanent change in world production. The cure is not discovered. Paul Grunwald says that in such a situation it would be impossible to return to the old system, rather than the V or U form. The important question is whether we will be able to return to the old level of production and how long it will take.
If the lockdown continues, businesses will collapse and the world will face historic unemployment. Reports
NEW YORK (International Press Agency. May 12, 2020) As countries around the world try to revive their economies, the easing of lockdowns is beginning to be seen everywhere. F) estimates that the next global economy will shrink by 3%, which is in stark contrast to its previous prediction that the world economy will grow by 3%.
The world is preparing for the biggest global crisis since the Great Depression of the 1930s, but how long will this crisis last and how will it be overcome? Many countries define recession in two consecutive quarters. Decrease in national production (GDP). According to the National Bureau of Economic Research in the United States, the recession was a sharp decline in economic activity that lasted for several months and was reflected in GDP as well as real income, unemployment, industrial production, and the retail sector.
The IMF estimates that we are currently experiencing the worst economic effects of the corona virus in the second quarter of 2020. He hopes that conditions will improve in the second half of the year and that businesses will begin to open slowly. If measures like Down continue, businesses will end and people will lose their jobs. This recession can be doubly serious and long and even more difficult to get out of if we go into a V, U, W, or L shaped recession.
Economists describe the different types of recessions through these English letters. These letters describe the shape of the graph of GDP. We call the V-type recession the best. It slows down the economy. Reaches its lowest level and soon the economy begins to improve. Jose Tsada, a professor at the Catholic University of Chile, says the idea is that our economy will return to normal and the recession will be short-lived, even if it takes a few quarters to control the epidemic. If successful, we will see a V-shaped recession as you begin to end the lockdown and national production begins to grow back.
Paul Grunwald, chief economist at S&P Global Ratings in New York, says that if social distance measures are eliminated soon or soon become a vaccine or cure, we will soon be back on track. Predicts economic slowdown of up to 9% in the second quarter of 2020. At this level, he thinks it will take a long time to get out of this recession. According to S&P, 2020 will see an overall economic decline of 2.4% and then an increase of 5.9% in 2021. Paul Greenwald says that we What we are seeing now is probably a U shape or a wide U in which we will come out of the effects of the crisis but it will take time.
Elena Dogar, associate managing director of Moody's Investors Services in New York, agrees that the Corona virus will not leave the economy in 2021. She says the economic activity we saw in the first half of this year We will not be able to make up for the loss in the second half, but they are positive about the news coming from China, where the slowdown in the economy and then the recovery has begun a quarter of a century earlier than in the rest of the world. Lockdown has eased. Factories have started operating. There are reports in various sectors that the production capacity has increased by 45 to 70 percent. Hy'dusry governments have returned to take immediate steps to bolster the economy.
Elena Dogar says that when measures such as lockdown are removed and activities resume, some conditions will improve in the second half of the year. Paul Greenwald says there is no vaccine or cure at the moment and that is why we have problems. Governments may end measures like lockdown and try to support the economy, but in the event of a second wave of corona virus, these measures will be reversed and the economy will be dealt another blow. Another downturn in the economy could be the so-called W-shape.
Professor Jose Tsada says that in such a situation, the crisis can only finally come out after a while, during which the economy improves but then starts to fall.
Paul Greenwald says that if we continue to take steps such as social distance, it will take a little longer for the economy to return to its normal level. Many people are also questioning whether the corona virus has set a new level of economic activity in the world. In the L-shaped recession, the economy recovers from a sharp fall but does not return to its old level and returns to a lower level.
Professor Jose Tsada says that in such a situation, it will not be a recession, but a permanent change in world production. The cure is not discovered. Paul Grunwald says that in such a situation it would be impossible to return to the old system, rather than the V or U form. The important question is whether we will be able to return to the old level of production and how long it will take.
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