(TemSummary of McKinsey Report on Economic Impact – as of March 18
The financial system suffers significant distress,
but a full-scale banking crisis is averted
because of banks’ strong capitalization and the macroprudential supervision now in place.
Fiscal and monetary-policy responses prove insufficient to break the downward spiral.
The global economic impact is severe, approaching the global financial crisis of 2008–09. GDP contracts significantly in most major economies in 2020, and recovery begins only in Q2 2021.
The coronavirus crisis is a story with an unclear ending. What is clear is that the human impact
is already tragic, and that companies have an imperative to act immediately to protect their employees, address business challenges and risks, and help to mitigate the outbreak in whatever ways they can.
Here are some interesting stats from China….
1. Disease causes fatalities mainly to population 70 plus
2. Increase Testing seems to have a direct result in reducing cases of the virus
3. Major Countries affected outside China are Iran , Otaly and South Korea
4. Significant economic effects on consumer spending, retail sales, car sales, smartphones, hotel occupancy, tourism – no company remains unaffected .
Positive – reduced pollution