Leading economist warns of 10 years of depression and debt because of coronavirus pandemic

A man walks past graffiti in downtown Barcelona, Spain. EPA-EFE/Alejandro Garcia

Reading Time: < 1 minute

Economist Nouriel Roubini has warned of a prolonged downturn and sluggish recovery from the coronavirus.

Nicknamed Dr Doom for his gloomy predictions, Professor Roubini said there are some jobs that simply will not come back after this crisis.

Even if the global economy recovers this year from the impact of the coronavirus, it will be “anaemic”.

He warned of “unprecedented” recession. Professor Roubini foresaw the financial crisis in 2008 before many others.

“During the global financial crisis it took about three years until output fell sharply,” he told the BBC’s Talking Asia programme from his home in New York.

“This time around it didn’t take three years, not even three months. In three weeks there was a freefall of every component.”

His warning comes as the number of coronavirus cases globally tops five million, with many countries seeing a second wave of infections and struggling to reopen their economies – a key factor in whether economic growth can bounce back quickly.

“You can open the stores but the question is whether they’re going to come back,” he says. “Most of the shopping centres in China are still empty. Half of the flights aren’t there. German shops are open but who wants to go and shop?”

Read more via BBC

 

 

%d bloggers like this: