ISA Coronavirus Update (15th of June)
Daily Summary
As the number of new cases of the coronavirus around the world continued to rise at an accelerating pace, the total number of diagnosed cases surpassed eight million. Meanwhile, the number of official deaths rose to more than 435,000.
With the number of coronavirus cases in India continuing to rise at a rapid pace, that country’s fragile healthcare system is being stretched dangerously thin. This is particularly true in those cities where the largest outbreaks of the coronavirus have taken place, including Mumbai, which has one of India’s most-developed healthcare infrastructures. The number of coronavirus cases in India has risen to more than 333,000, while the number of official fatalities is now 9,524.
Authorities in Beijing were forced to impose a strict lockdown in an area around one of that city’s most-visited markets after dozens of cases of the coronavirus were found among people who had recently visited that market. Residents in that area were forced to remain at home and all sporting events in Beijing last weekend were halted. When more cases were found, this lockdown was extended to other areas of the city.
With social distancing and travel restrictions being eased in some parts of the world, there is a growing fear that this will lead to a renewed resurgence of the pandemic in those regions. Nevertheless, there are also fears that, should these restrictions return, the economic harm will be catastrophic.
Key Developments
A Worsening Economic Outlook for the United States in 2020: The United States Federal Reserve reduced its outlook the the US economy in 2020. The Federal Reserve now expects the world’s largest economy to contract by 6.5% this year, with the country’s unemployment rate finishing the year at 9.5%.
The British Economy Falls Hard: Between February and April 2020, the United Kingdom’s economy shrank by 10.4% quarter-on-quarter, with the economy contracting by 20.4% month-on-month in April alone. Manufacturing output, construction activity and exports all fell sharply in April.
Trend to Watch
Italian Prime Minister Giuseppe Conte was questioned by prosecutors over his handling of the early stages of the coronavirus crisis in Italy. This could foreshadow other government leaders facing investigations into their handling of the crisis as well.
The Coming Days
There is a growing possibility that Saudi Arabia will have to cancel this year’s Hajj pilgrimage that is scheduled to begin in late July. This would deal a massive blow to Saudi Arabia’s economy, as the Hajj is a mainstay of the country’s tourism industry.