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What does the coronavirus mean for the global economy?

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What does the coronavirus mean for the global economy?

WTVN |
3 months ago
WTVN

Automatic TRANSCRIPT

Got to get a grip we have to ask ourselves rationally logically impact here Eckley academically what does the corona virus mean for the global economy let's not just assume that everything is going to result in economic disaster and please on file you have to say this I said it last week but I guess I should say it again I am talking here only about the money I'm only talking about the finances the economy I'm not talking about the human toll which shows of course we all know the far more important toll here and I'm very sorry if this has affected you personally or your family we've seen horrible stories of illness deaths and people stranded in isolation quarantine often in foreign countries I that's matters that matters a lot frankly matters more than what I'm talking about but it is a personal finance show song gonna stick to my screen here what we've got to do is recognize this is an economic related issue what does it mean for our economics so here's the info the White House national economic council and the White House council of economic advisers they're both jointly assessing the potential short term and long term effects of the coronavirus and so far they say there's limited economic impact they say it's going to reduce our domestic output by zero point two percentage points now let me just put that in context for you last year our GDP the gross domestic product is the total value of all the goods and services we produced in our nation last year our GDP rose two point three percent they say that this is going to cut it by zero point two Cincinnati two point three you have two point one in fact they say if this is really awful it'll cause a reduction of point seven five what were two point three last year so instead of two point three it'll be about one point six so this is not some is horrific to you doesn't to me how about the vice chair of the federal reserve he said recently that the broader economy be fine if this virus is resolved within six months he noted that slowdowns caused by a temporary crisis are usually followed by significant up tech is the economy stabilizes but let's just take a look what's going on in China directly China's GDP last year we were two point three percent growth they were six point one China is on fire China is just rock and but what about the coronavirus in China well Oxford economics says the virus is gonna cost China's growth it's not going to be six point one this year they say it's gonna be five point six the colonists were surveyed last Friday by the Wall Street journal they say that the first quarter growth for China will be four point nine a global economic growth will be two point three wanted in two point five dollars these numbers are just not that big a deal Goldman Sachs says it's expecting the virus to reduce U. S. growth by one half of one percentage point in the first quarter and that we're going to recover that in the second quarter with minimal impact for the whole year overall it says that these viral outbreaks typically last only a few months of activities back to normal within six to nine months and based on that Golden economists say China's economic growth for the year will be five and a half percent the earlier forecast of five point nine they say if things just get more prolonged as a result of the outbreak growth instead of five point five will be five percent noticed we're still talking about growth is sort of like saying you're on the highway doing seventy miles an hour and you're going to slow down to fifty miles an hour you're still moving forward you're still making progress yeah fifty feels a lot slower than seventy but it's not like going backwards I NG economist iris paying says retail sales in China are going to expand despite the virus but she says they're only going to expand three to four percent this quarter would have been even more the Congressional Budget Office documents yet the CBO says they've modeled the economic effects of a flu pandemic and they said that one hundred thousand deaths would cut our GDP by one percent it wouldn't even cause a recession focus on that number this is amazing the CBO says that if we suffer a hundred thousand people dying in the US our economy will still be growing by the way the flu in the U. S. has sickened nineteen million people this year we've put a hundred and eighty thousand in the hospital ten thousand have died from the flu the corona virus so far four hundred people have died worldwide so explain to me why everybody is panicking over the coronavirus ones getting all the headlines we should be more worried about the flow then you should be worried about the coronavirus