Coronavirus will hit developed economies four times stronger than the 2008 crisis - Goldman Sachs

According to Goldman Sachs Group, the economy of developed countries in the second quarter will decrease by about 35% compared to the previous three months - this is 4 times the previous anti -record recorded during the 2008 crisis, Bloomberg writes .

How quickly the economy of the first world countries will recover after such a fall remains an open question, because no one knows how quickly people will return to work, the New York economist Yang Hatsius wrote in a note for Goldman Sachs clients.

The number of new cases of infection with the virus, apparently, reaches a global peak, does not exclude the expert. The bad news is that the observed improvement of the epidemiological situation is most likely a direct consequence of social distance - with a concomitant decline in economic activity. “Everything can recoup back if people just return to work,” explained the economist Goldman Sachs.

Hatsius indicated that in general developed countries made an impressive contribution to the development of the global economy, trying to prevent the collapse of the population and maintain loans so that the business could remain afloat. But Europe should do more, and rich countries will have to help developing economies overcome the crisis.

The reaction to the crisis in Europe should be reinforced due to a larger and centralized softening of financial policy and greater unity of the eurozone, according to Goldman Sachs.

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