domingo, julho 19, 2020

The 90% economy"

"IN MANY THINGS 90% is just fine; in an economy it is miserable, and China shows why. The country started to end its lockdown in February. Factories are busy and the streets are no longer empty. The result is the 90% economy. It is better than a severe lockdown, but it is far from normal. The missing bits include large chunks of everyday life.
Discretionary consumer spending, on such things as restaurants, has fallen by 40% and hotel stays are a third of normal. People are weighed down by financial hardship and the fear of a second wave of covid-19. Bankruptcies are rising and unemployment, one broker has said, is three times the official level, at around 20%.
If the post-lockdown rich world suffers its own brand of the 90% economy, life will be hard
Many businesses will emerge from lockdown short of money, with strained balance-sheets and facing weak demand.
The longer the world has to endure a 90% economy, the less likely it is to snap back after the pandemic."

Trechos retirados de "Life after lockdowns"

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