Strict lockdown measures may be needed to control the surge in cases in the US as the country faces the risk of a double dip recession.
Rafael Domenech, head of economic analysis at BBVA Research, shared an article on how a surge in Covid-19 cases may lead to a double dip recession in the US.
Additional federal funding, severe lockdowns and increased spending on Covid-19 testing may be needed to address the surge in cases.
Compared to other countries, lockdowns in the US have not been effective in controlling the surge in cases posing a threat to economic recovery.
Further, the delay in testing with a seven day wait for results is proving ineffective in curbing the spread of infections.
A double-dip recession maybe the worst case scenario if the virus is not brought under control.
In other news, as macroeconomic influencers share their views on the Covid -19 impact, offshore financial centres (OFCs) have contributed to financial instability and drained countries of the resources needed to fight crises such as the pandemic.