The country’s federal budget deficit, caused by measures to compensate for the damage caused by the quarantine, will increase to four trillion dollars.
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The US public debt and the debts of US corporations this year will rise to a record high due to the coronavirus pandemic, reports The Washington Post.
The deficit in the United States federal budget, caused by the measures to compensate for the damage caused by the quarantine, will increase to four trillion dollars, that is, twice the economy of the American nation, review the medium.
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Experts compare the current situation with the Great Depression. In particular, there are examples of large companies like ExxonMobil and Walgreens, which had accumulated too much debt and have now exhausted their lines of credit.
So to support corporations, the US Federal Reserve has restored interest rates and has added more than $ 2 trillion to its reserves in the last six weeks. The same amount of money was added during the four years of the Great Depression.
Meanwhile, estimates of the total cost of the pandemic reach alarming figures. At the end of March, when the crisis was still beginning, the hedge fund company Bridgewater Associates calculated that the economy would contract in the next three months at an annual rate of 30%, while Goldman Sachs set the drop at 24%.
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