Surveys show coronavirus pandemic savaging global economy
Updated: 2020-03-25 15:44:16 KST
The novel coronavirus will devastate the global economy and failure to rein it in risks a worse downturn than the Great Depression.
That's Economist Nouriel Roubini this week adding the best economic outcome that anyone can hope for is a recession deeper than that following the 2008 financial crisis."
The global economy is taking a battering not seen in decades, the outcome of severe restrictions on businesses and households by governments desperately trying to contain a pandemic that's killed almost 17-thousand people worldwide.
With around one in five people around the globe under lockdown - ordered to stay home - what does the standstill mean for the global economy?
It's the topic of our News In-depth tonight with Dr. Yang Junsok, Professor of Economics at the Catholic University of Korea.
Professor Yang, welcome to the program.
Economists around the world are pouring out pessimistic outlook for the global economy. Harvard University economist Carmen Reinhart joined that wagon saying the global economy hasn't looked this fragile since the Great Depression of the 1930s. That was the last time the world witnessed a sustained downturn in both emerging markets and the developed-nation counterparts.
What's your standpoint?
The highly contagious coronavirus has caused entire regions to be placed on lockdown and in some places soldiers are patrolling the streets to keep consumers and workers indoors, halting services and production and breaking supply chains.
We've seen the Samsung, LG smartphone factories in India shutdown; today, we're getting news of the LG battery plant in Michigan shutting. Are we going to see a domino effect? How will the global supply chain be affected?
Then, how do we deal with such a crisis?
Government leaders, who've compared this to fighting a war, have pledged massive stimulus to cushion the blow and protect jobs, as have central banks, but it's uncertain at this point whether these measures will prevent a deep recession this year.
The White House and Senate leaders reached an agreement early Wednesday on a massive 2 trillion dollar coronavirus spending bill aimed at alleviating the economic impact of the outbreak.
"At last we have a deal. the Senate has reached a bipartisan agreement on a historic relief package for this pandemic. It will rush new resources onto the front lines of our nation's health care fight and it will inject trillions of dollars of cash into the economy as fast as possible() In effect, this is a wartime level of investment into our nation."
"we have a bipartisan agreement on the largest rescue package in American history. This is not a moment of celebration, but one of necessity."
For some an in-depth look into the stimulus package as well as the situation on the ground in the U.S., we have Jeff Moon, former Assistant US Trade Representative and currently President of China Moon Strategies, joining us live from
Jeff, thanks for joining us.
What's the general feeling about this 20 trillion dollar stimulus? Is this too big, too small? Does it cover everything that needs to be covered?
How are Americans dealing with the lockdown? Despite government stimulus, anxiety must be running high with corporations, restaurants going out of business, people concerned over losing jobs what is the general mood over there?
The biggest task facing the world right now is stopping the spread of the coronavirus. But even when the global public health crisis is under control and global supply chain disruptions caused by COVID-19 end, many large companies expect that business will not return to normal immediately. What's your forecast?
Jeff Moon, former Assistant USTR for China and President of China Moon Strategies, many thanks for speaking with us this evening. We appreciate it.
Professor Yang, would you agree with Jeff on that?
Let's try to assess South Korea's stimulus package. South Korea doubled an emergency financial aid for businesses to 80 billion dollars amid rising worry about the economic fallout from the COVID-19 outbreak. Do you think this would suffice?
What are your thoughts on some of the local government's direct cash handouts? Do you think they're effective in tempering the shock and greasing the wheels of an eventual recovery?
What is your forecast of the South Korean economy for the rest of this year and next?
Dr. Yang Junsok, Professor of Economics at the Catholic University of Korea, many thanks, as always for sharing your insights with us this evening. We appreciate it.