fbpx
Coronavirus Effects Could Reverberate for Decades

Coronavirus Effects Could Reverberate for Decades

30.04.20

The impact of coronavirus could be felt for decades, as debt burdens rise and people push back from globalisation, comment industry experts. We are also likely to see the biggest fall in GDP since the Second World War, as a result of lockdowns curbing supply and demand, reduced incomes and uncertainty about the future.

As the incoming data continue to crater, the focus will understandably remain on the immediate economic damage that is being caused by virus-related shutdowns. But investors should keep in mind that COVID-19 will have consequences beyond the next year and the effects will continue to reverberate long after the lockdowns are lifted.

Government measures will result in substantially higher national debts. However some countries may be able to gradually reduce their debt burdens, especially ones that issue their own debt as they can keep interest rates low. The virus may result in a pushback against globalisation and multilateralism.

The absence of a co-ordinated policy response to the virus by major economies is already striking. Unlike in 2008-09, when governments and central banks co-ordinated their responses in global fora like the G20, this time measures have been announced separately and co-ordinated on national rather than supra-national lines.

Meanwhile, populist leaders are already using the crisis as a platform to fire up their base and consolidate their positions. President Trump has suspended immigration to the US for 60 days, Viktor Orban has effectively suspended Hungary's parliament as he is ruling by decree and Brazil's president, Jair Bolsonaro, has upped the ante in his dispute with congress by throwing his support behind anti-democracy protests.

It's far too soon to say how these events will develop. But it's easy to see how they could prove to be the thin end of a very long wedge. After all, as the virus fades, the recriminations will begin, providing yet more fodder for nationalists.

Abode Affiliates

  • Alleyne Real Estate
  • Blevins Franks
  • Coldwell Banker
  • Crane Resorts
  • Monaco Real Estates
  • RDO
  • St Francis Links
  • Unique Home Stays
  • Yoo
  • Worldwide Dream Villas
  • Enigma Yachts Limited
  • Cornerstone Tax Advisors
  • Pedini London
  • Alexander James
  • Moore Stephen
  • Ibiza Transit Express
  • Oyster Yachts
  • Jumeirah
  • Wall Street Luxury
  • Heron Real Estate
  • Edenhurst
  • MG&AG
  • Gama Property
  • Touch Design Group
  • St Edward
  • Ultra Villa
  • Luxury Italian Living
  • Habitat First Group
  • BDO
  • 7Storeys
  • Worldwide Property
  • Dimora
  • Dominic McKenzie Architects
  • Harry Manning
  • Smart Living
  • Isle Blue
  • MAS Marbella
  • Millgate
  • Jersey Finance
  • guernsey-relocations-logo
  • viberts-logo
  • kpmg-logo
  • author-interiors
  • Wilkinson Beven
  • BoConcept
  • Ante Vrban
  • Deborah Garth
  • You home
  • Ra Shaw Designs
  • Caudwell Collection
  • accanto-interiors
  • Fritz Hansen
  • capital-rise
  • jarrods-staircase
  • neil-davies-logo
  • Tina Shone Group
  • Taplow riverside
  • Aimo
  • ns-ceramics-logo
  • Rusk
  • Consilium Expert Group
  • Ben Krupinski Builder
  • Swoffers
  • Guernsey Relocation Services
  • Douglas Graneto
  • Strutt & Parker
  • wilsons
  • MJC Associates
  • plainspace
  • Fine & Country
  • Bramble Ski
  • Penthouse queen
  • Sarco_Affiliate_Logo
  • taylor wimpey
  • cooper-gardner
  • M Design Architects
  • codan
  • Lovells
  • London DE
  • HELENA JORNET FINQUES
  • Prime Lands Group
  • Bellegarde Estates
  • Sinclair
  • Pippa Paton
  • Ecole d'Humanite
  • Benedek Lewin
  • Inspired Villages
  • Huelin Homes
  • Gaudin
  • Lovells Property
  • Racecourse Lodge Logo
  • Paseo
  • Lemay + Escobar
  • Octagon
  • Locate Isle of Man
  • Newlands of Stow
  • Hawksford
  • Holdun
  • Schule Schloss Salem
  • AR Architecture
  • lazaro
  • Sella Concept
  • Blakstad
  • SAREG
  • miller interior
  • Wealth Club
  • Yellow House Architects
  • Designer Touches
  • Zafiro
  • Nicole Murray
  • Scout Boats
  • Emerson Insinkerator
  • Forsters
  • https://www.cullenhomes.co.uk
  • https://www.londonlight.works

Enter your dream destination