UK set for worst economic slowdown for 300 years, Deutsche Bank analyst says | Squawk Box Europe Description video: Jim Reid, head of thematic research and fundamental credit strategy at Deutsche Bank, discusses the global economic shock caused by the […]
UK set for worst economic slowdown for 300 years, Deutsche Bank analyst says | Squawk Box Europe
Jim Reid, head of thematic research and fundamental credit strategy at Deutsche Bank, discusses the global economic shock caused by the coronavirus crisis.
Deutsche Bank CEO looks gloomy at the outlook for the global economy
Deutsche Bank CEO warned Wednesday that the global economy will not return to pre-coronavirus levels “for a long time.”.
Business activity in the eurozone fell sharply after strict quarantine measures introduced in March, but has rebounded somewhat in recent months after some restrictions eased. A similar picture was observed in the United States..
However, there are concerns that the small upturn in activity will not last long if new quarantine measures and social restrictions are introduced again, or if a vaccine and treatment for coronavirus infection is not introduced into wide circulation..
«Returning to our former economic strength will take much longer than we anticipate today», – stated Christian Sewing, CEO of Deutsche Bank speaking at the Handelsblatt Banking Summit.
«Many companies have to live long enough with reduced sales. We will have an economic recovery, but only a phased one and not in all sectors», – warned Sewing.
The pandemic has wreaked havoc on the travel and tourism industries. Some analysts wonder if the ongoing summer season is just a temporary lifeline for some hotels and other tourism-related businesses..
In addition, governments are planning to reduce some of the incentives they have provided since the first strike of the pandemic, which poses a growing risk for many companies and workers..
«Reaching pre-crisis levels will be difficult and time-consuming. This will not happen this year or next», – Sewing believes.
He added that as a result of the health emergency, other economic issues are not being discussed. He mentioned «the dangers of disordered Brexit», Effect «low interest rates» and the trade conflict between the US and China.
«I don’t want to be too pessimistic, ladies and gentlemen, I am just describing the current situation.», – Sewing explained his position to the audience of the Frankfurt summit.