Associated Press
- Trump said on Monday the US “may be” headed toward a recession because of the coronavirus.
- Businesses across the country are starting to shut their doors, particularly restaurants and bars.
- Forecasters are increasingly predicting a recession that could stretch on for months.
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President Trump said on Monday that the US could be heading toward a recession as a result of the damage the coronavirus is inflicting on the American economy.
At a White House press conference, the president acknowledged there could be a swift economic downturn but expressed confidence it would be short-lived.Â
“Well it may be,” Trump said about the chance of a recession. “We’re not thinking in terms of recession, we’re thinking in terms of the virus.”
He went on: “I think there’s a tremendous pent-up demand, both in terms of the stock market and in terms of the economy. Once this goes away, once this goes through and we’re done with it, I think you’re gonna see a tremendous, tremendous surge.”
The comments from Trump are remarkable, given how Trump had championed the economy‘s strength and placed it at the center of his re-election bid up to now.
Businesses across the US have closed their doors as a result of the virus, leading to heightened fears of a recession as consumers pull back on their spending. Forecasters are also increasingly predicting a recession that could stretch on for months.
“The fast-spreading coronavirus outbreak and its accompanying fear factor are hitting travel, curtailing consumer and business demand and disrupting global and U.S. supply chains. With markets amplifying the hit, the drag will likely surpass 0.5 percentage point,” Gregory Daco, chief US economist at Oxford Economics, told The Wall Street Journal.
Goldman Sachs and JPMorgan are also predicting the US would be thrown into a recession because of the coronavirus — and the travel, service, and entertainment sectors are expected to take a fierce hit this quarter.
