The US and global economies are already falling into recession, with forecasts being revised on the fly as the coronavirus disease 2019 (COVID-19) spreads around the world, putting an end to a 10-year US economic expansion, according to IHS Markit Chief Economist Nariman Behravesh.
“There’s no question we’re in a recession,” Behravesh said Thursday during the JOC webcast, TPM20: What We Missed — The Economic, Trade and Container Shipping Outlook.
“The only question is how deep.” As of Thursday, IHS Markit, parent company of JOC.com, forecast the US economy would contract 0.2 percent in 2020, “but that will very soon get revised down to at least -1 percent,” perhaps by the end of the week, Behravash told the more than 1,100 logistics executives who attended the webcast.
The direct cause of the recession is the spreading coronavirus, or more precisely the precautions taken against the coronavirus, he said.
“So far, it looks like the only way to stop it (COVID-19) is by freezing economic activity, and that plunges the economy into recession,” Behravesh said. “The virus itself isn’t killing the economy, but the response to it is sending us into recession.”
Source: Fresh Plaza