Jan Hatzius [Goldman Sachs]: The GDP Of Developed Countries May Reduce By 35 Percent
Due to the coronavirus pandemic, the GDP of developed countries may fall by 35 percent in April-June compared to the first quarter of this year, according to Goldman Sachs chief economist Jan Hatzius.
According to him, although the number of cases in many countries is likely to have reached a peak, new outbreaks can be expected when people start returning to work.
The current drop in GDP is likely to be four times greater than the decline during the financial crisis in 2008. To improve the situation, the expert suggests increasing fiscal incentives, and in relation to the EU - "do everything possible to preserve the Eurozone." In addition, it is necessary to allocate large amounts of assistance to developing countries in order to prevent the deterioration of the socio-economic situation in the world and preserve global markets.
Currently, there are more than 1.92 million cases of coronavirus in the world, and about 120 thousand people have died.