Quote (dro94 @ 27 Apr 2020 02:02)
Most of the models are operating under the assumption that Q1 is low growth +0.5%, Q2 -30%, then Q3 and Q4 pick up again significantly but not quite back to pre corona levels. Annualised that puts GDP growth in the -6-8% range for most countries, but the IMF are already saying those estimates could be optimistic
Above all, these predictions will come with YUUUUGE error bars.
The amount of uncertainty is simply overwhelming at the moment.
Best case scenario: most industrialized countries are able to reopen their economies in May and June. There is no second wave over the summer, and by the fall, efficient treatment is found that drastically reduces the mortality of hospitalized Covid-19 patients and also their average length of stay, so that the world can allow a much higher level of infections in fall and winter without having the healthcare system overwhelmed. By the end of the year, a vaccine is ready and starts being mass-produced in Q1/2021.
Worst case scenario: most industrialized countries try to reopen their economies in May and June, but it backfires badly and immediately. The second wave is so bad that everyone is forced to go into shutdown again. No treatment is found, hopeful vaccination options all turn out to be failures. It is found out that a large portion of those who were already sick did not develop immunity, instead, they can get infected and spread the virus again. By the end of June/July, the shutdowns have such immense economic effects that governments around the world are forced to make an impossible decision: either sacrifice millions of people and still have to deal with the mother of all economic crises, or keep up the shutdowns indefinitely and risk the total and utter annihilation of the economy, wealth and social order.
Both scenarios are unlikely, but not entirely far-fetched.
This post was edited by Black XistenZ on Apr 26 2020 06:15pm