Saturday 18 April 2020

A Double Recession? Economies risk debt crises after stimulus spending - Top 200 News

The economic meltdown brought on by the coronavirus pandemic has governments deploying historically vast fiscal spending packages to support millions of their citizens and businesses.  

This spending is necessary to support economies — officials agree on that much. But the debt incurred over time could mean a deeper crisis and a doubled-down recession for some countries, according to recent reports. 


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“Many developed countries may, in the medium term, find themselves on the brink of a debt crisis,” Agathe Demarais, global forecasting director for the EIU, wrote in the report.

“This is compounded by the fact that many of the European countries that are among the worst affected by the epidemic, such as Italy and Spain, already had weak fiscal positions before the coronavirus outbreak.”


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