The Economic Impact of a Global Healthcare Emergency
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Just six weeks from now, the economic picture of the United States was beaming with a low unemployment rate, incredible income growth, and flourishing small businesses, until Coronavirus—the COVID-19—hit the U.S.
Now the virus has turned into a major healthcare pandemic causing the Central Bank to increase its federal funds target range from 0 percent to 0.25 percent for economic stability and support. This adjustment will significantly impact the low-wage earning minorities as a major recession is likely to take haul on the United States.
The Economic Impact of COVID-19 in the Short and Long Run
The prevalence of the novel Coronavirus has affected many families and businesses of all sizes across the world. The damage isn’t contained to just one country; it is affecting countless economies. The severity of the damage in the long run will depend on how proactively authorities deal with the epidemic.
The early impacts of COVID-19 on the economy of China were far worse than initial estimations and forecasts. The manufacturing and service sectors in China saw a major low during the month of February.
A record decline of 80%was seen in the automobile sales in China, exports decreased by 17.2%, and ship traffic also experienced a fall. Many economists have forecasted a sharp decline in China’s 1st quarter GDP—the first depression ever since China started quarterly data reporting in 1992.
Though according to the recent updates, the epidemic seems to have decelerated in China; however, the virus and its economic impacts have gone global. A consistent surge has been reported in the number of infections in South Korea, Europe, United States, Iran, and other countries, with authorities employing increasingly strict preventative and reactive measures to contain the COVID-19 pandemic.
Europe and Japan are most likely on their way to economic depression given their high reliance on imports and export, and their shaky performance in the 4th quarter last year. While the United States hasn’t entered the crisis phase as of yet, economic analysts are predicting that there may be a depression in the U.S. GDP in the 2nd quarter.
According to the forecasts by the Organization for Economic Co-operation and Development (OECD), the epidemic will lead to a decrease in the global GDP from 2.9% to 2.4% in the year 2020.
How Investing in Precious Metals Can Help?
While COVID-19 continues to spread its negative impacts across the globe, it’s normal for people to be worried about their hard-earned life savings. You wouldn’t want to invest in something that comes with no guarantee of profitable returns.
To help you during this time of global chaos, Orion Metal Exchange offers precious metal investments that will always bring you lucrative returns. History can confirm that gold has always been the most reliable financial asset for people. No inflation or economic recession can affect its value permanently.
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