US and EU intend to restart economic activity
Analyst Fitch Solutions said that the United States and several European countries still report thousands of new cases of coronavirus infections every day, so there are questions about whether they can safely ease restrictions aimed at curbing the pandemic, CNBC writes.
These restrictions, which include travel bans and the temporary closure of enterprises and schools, have led a significant part of global economic activity to a standstill. Noting signs that the spread of the virus has begun to slow, many governments are keen to restart economic activity. But Fitch Solutions’s Cedric Chechab said China’s experience with lifting these restrictions has shown that a new wave of infections could arise. "China is gradually opening up its economy, but we have already seen some emerging risk of a second wave coming from the city of Harbin," he said, noting that when China began to weaken its measures, new cases of infection were reported daily. “If you think about other countries, such as the USA, Spain and Italy, although the number of new cases has peaked, the numbers are still extremely high compared to what we saw in South Korea and China,” he said. “Thus, the question is whether they can actually begin to ease restrictions and open economies when they still have so many new cases (infections). " The United States, Spain and Italy reported the largest number of infections in the world, according to data collected by Johns Hopkins University. According to the university, on Thursday the United States reported more than 28,800 new cases of infection, while Spain and Italy respectively added 4,600 and 2,600 cases to their numbers. US President Donald Trump has called for several times to ease restrictions on the movement of people - although he also said that he would not reopen the economy "until we find out that this country has recovered." But some states have relaxed measures, such as allowing beaches and parks to open at certain hours. In Spain, the government allowed the resumption of production at some plants and construction work. Italian Prime Minister Giuseppe Conte said that any mitigation, which is likely to begin on May 4, will be carried out carefully and carefully. Meanwhile, countries in the Asia-Pacific region have shown great caution in easing blocking measures. New cases in China fell to double digits before the country lifted restrictions in Wuhan, which became the epicenter of a coronavirus outbreak. New Zealand plans to begin mitigation next week - after new infections have remained at unambiguous levels in the last few days. Malaysia extended the partial block, although the number of new cases fell below 100 in the past week. The recovery of the global economy depends on how quickly countries can resume their activities, said Chekhab, who predicted that the economy will feel most of the negative effects in the second quarter. “We hope that by the fourth quarter we will begin to recover slightly,” he said. “Of course, it depends on how quickly countries can re-open their economies and begin to ease these locks.”