Coronavirus: California renewed lockdown measures to weigh on economic recovery – OCBC
|US lockdown risk threatens H2 economic recovery as California closes indoor activities in bars, restaurants, zoos and museums statewide as COVID-19 cases surge, Wellian Wiranto from OCBC Bank reports.
Key quotes
“California, the most populous state in the US, announced a rollback in its reopening plan due to covid-19 resurgence fear. All bars, zoos and museums are now closed again, and people cannot dine indoors anymore. Malls, gyms, and other non-essential businesses there are shut.”
“California contributes nearly 15% of the US GDP. The fact that it is reentering a lockdown, in and of itself, would weigh down on the hopes for H2 recovery of the US (and global) economy. While other hotspots of Florida and Texas – which together account for 14% of US GDP – are resisting massive lockdowns so far, further virus upticks there may force their hands.”
“Overall, even as the world has just started to see some reopening uplift, the risk of having to shut down to save lives is getting very real once again, unfortunately.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.