Paul Donovan, the Chief Economist of UBS Global Wealth Management, analyzes the implications in the near and long-term for the economy caused by the coronavirus.
“If consumers are afraid (whether rational or not), they may spend less in the short term. If that happens, it hurts the global economy.”
“Home working has increased with the virus. Once employers and staff discover that home working works, it may become more common. Online consumption of entertainment and some goods has also increased with the virus. As with home working, once people change their habits they rarely change back.”
“There are lots of economic implications. Transport and logistics will change. Demand for investment goods may rise (building local production). Demand for office and retail real estate could fall. The more important disruptions from the virus may lie in the long term.”
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.