Economic Implications of COVID-19

COVID-19 has – and continues to have – a huge impact on America’s economy.  A team from the BBVA Research has published its Q3 2020 Economic Outlook.  Led by Nethaniel Karp, chief BBVA  economist, the results found that the coronavirus has actually brought to the forefront previously concealed troubles in the economy.  Indeed, it is believed that what we are now dealing with is potentially the worst recession since World War II.

The 2020 growth baseline has been maintained at -5.1 percent and 3.5 percent in 2021.  And with no signs of the virus coming to a halt or a vaccine being found any time soon, there is no real sign that the economy will recover either.  Some parts of the economy continue to reopen but there are many that remain shuttered.  Many individuals are still concerned about venturing out which also doesn’t help the economy.

Nonetheless whatever kind of level of return to normal activity there is will be helpful. In addition, some US states will fare better than others depending on their level of infection and their willingness to come out and re-enter active life.