Goldman Sachs Says This Simple Measure Can Save Lives and the Economy
As we all know, the fate of many lives, not to mention the U.S. and global economy, largely depends on the containment of the novel COVID-19 coronavirus. While there are many vaccine candidates currently in trials, there's no guarantee that any will be approved for effectiveness and safety anytime soon. Though certain treatments have been shown to limit the worst effects of COVID-19, those treatments are only partially effective. The fact is that virus cases are making a big resurgence in certain states, with deaths (a lagging indicator) now beginning to tick up as well. This weekend, ICU beds in Houston, one of the worst-hit new hot-spots, reached full capacity.
On the economic front, the resurgence of COVID-19 is also causing massive damage to the economy. The June resurgence in COVID-19 caused the International Monetary Fund to lower its prior forecast for global growth through next year. The IMF now projects world gross domestic product (GDP) will fall 4.9% in 2020, down from a 3% decline projected in April. Though the IMF expects a recovery of 5.4% growth next year, that's a more gradual recovery than previously contemplated, and still leaves 2021 GDP output 6.5 percentage points lower than pre-COVID estimates. That figure could also be revised lower if we don't contain the virus.
Closer to home in the U.S., things are projected to be worse. The Conference Board, a business-funded nonprofit research organization with about 1,200 companies as members, now projects U.S. GDP will fall by 7% in 2020 and only recover 1% next year, leaving June 2021 U.S. GDP 7.5 percentage points below January 2020 figures, in its baseline scenario.
Source Fool.com
