Economic Recovery Depends on Reducing Virus
The global economy suffered a severe contraction in the three months through June, and the strength of its recovery will depend on authorities’ success in reducing pandemic flare-ups, reports the Wall Street Journal. Some sectors have sprung back, but in the absence of a medical solution, “the strength of the recovery remains highly uncertain,” said Tao Zhang, deputy managing director of the International Monetary Fund.
After June, some things started getting better, only to slump back after the incidence of coronavirus increased again. The Federal Reserve Bank of Atlanta on July 9 estimated that U.S. GDP declined 10.3 percent in the second quarter compared with the first quarter. U.S. retail sales rose 18.2 percent in May and 7.5 percent in June, according to the Commerce Department. Economists worry that those outbreaks not only reduce current activity, but will make consumers and businesses more wary of returning to normal patterns of behavior.