Failure of US lockdowns could lead to double dip recession – offshore financial centres have drained resources needed to fight pandemic
21 July
Strict lockdown measures may be needed to control the surge in cases in the US as the country faces the risk of a double dip recession.
Rafael Domenech, head of economic analysis at BBVA Research, shared an article on how a surge in Covid-19 cases may lead to a double dip recession in the US.
Additional federal funding, severe lockdowns and increased spending on Covid-19 testing may be needed to address the surge in cases.
Compared to other countries, lockdowns in the US have not been effective in controlling the surge in cases posing a threat to economic recovery.
Further, the delay in testing with a seven day wait for results is proving ineffective in curbing the spread of infections.
A double-dip recession maybe the worst case scenario if the virus is not brought under control.
In other news, as macroeconomic influencers share their views on the Covid -19 impact, offshore financial centres (OFCs) have contributed to financial instability and drained countries of the resources needed to fight crises such as the pandemic.