US, WASHINGTON (ORDO NEWS) — The loss of US corporations as a result of the pandemic could reach $ 4 trillion, and globally, the loss could be $ 12 trillion. Such an assessment is given in a report released on Friday by experts from the American hedge fund Bridgewater.
“At the moment, we estimate a possible reduction in the income of American corporations at about $ 4 trillion,” the report states. “This is an extremely dangerous reduction, if it is not compensated, it will have long-term consequences. Since the reduction in income will affect everyone, there will be losses on a global scale about three times as much – about $ 12 trillion.”
Hedge fund experts noted that they base their forecast on an analysis of the dynamics in the securities market, forecasts of large corporations and the possible damage resulting from a pandemic for certain sectors of the American economy.
If major financial initiatives are not taken to counter the economic consequences of the pandemic, the authors of the report warn, then this year US GDP will fall by more than 6%. “We expect the most significant drop in the second quarter, when, according to our estimates, the level of economic activity will be 10% lower than at the end of 2019,” the document says.
The greatest losses, according to experts of the fund, will be suffered by energy, transport and the entertainment industry. According to their estimates, capital investments will decrease by $ 900 billion, expenses on the purchase of shares, mergers and acquisitions – by $ 600 billion, in addition, “very significant staff reductions” are expected.
The current situation, experts say, “may turn out to be much more serious than during the financial crisis of 2007-2008, and further events” will depend on how large-scale the measures proposed by politicians will be.”
The outbreak caused by the new coronavirus disease was recorded at the end of 2019 in Central China, later spreading to more than 140 countries and was recognized by the World Health Organization as a pandemic.
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