Failure of US lockdowns could lead to double dip recession – offshore financial centres have drained resources needed to fight pandemic

21 July 2020 (Last Updated July 21st, 2020 07:30)

21 July

Strict lockdown measures may be needed to control the surge in cases in the US as the country faces the risk of a double dip recession.

Rafael Domenech, head of economic analysis at BBVA Research, shared an article on how a surge in Covid-19 cases may lead to a double dip recession in the US.

Additional federal funding, severe lockdowns and increased spending on Covid-19 testing may be needed to address the surge in cases.

Compared to other countries, lockdowns in the US have not been effective in controlling the surge in cases posing a threat to economic recovery.

Further, the delay in testing with a seven day wait for results is proving ineffective in curbing the spread of infections.

A double-dip recession maybe the worst case scenario if the virus is not brought under control.

In other news, as macroeconomic influencers share their views on the Covid -19 impact, offshore financial centres (OFCs) have contributed to financial instability and drained countries of the resources needed to fight crises such as the pandemic.

Read more