Us retailers were in a more difficult financial position than expected top-managers and analysts at the beginning of the pandemic coronavirus infection COVID-19, says The Wall Street Journal.
according to the publication, the sector has seen an increase in the number of bankruptcies: the number of retailers who requested protection in accordance with article 11 of the bankruptcy Code of the United States, currently exceeds the figure for the whole of last year, informs “Interfax”.
Since the beginning of this year of the bankruptcy petition filed by 24 public and large private retailer in the U.S., according to BankruptcyData.com. In 2019 declared bankruptcy 20 retailers.
we will Remind, on Monday in the International monetary Fund has estimated the fall of the US economy in the II quarter of this year, 37% yoy. The IMF also predicts that by the end of the year, the fall in GDP will make 6.6 per cent, “despite the unprecedented policy support to the economy”.
“the Main risk is the most difficult to quantify is the fact that the jump in cases COVID-19 in the United States could lead to a new partial halt of activities to save lives,” said the Fund.
In mid-June, the head of the Federal reserve system (FRS) Jerome Powell acknowledged that the US economy faces long-term challenges from rising unemployment and waves of bankruptcies of small businesses in a pandemic, despite the recent signs of recovery. According to him, “the longer the crisis lasts, the higher the likelihood that prolonged damage due to the constant loss of jobs and closure of business.”
While Powell expressed concern about the impact of the crisis on small business. He stressed that small and medium-sized enterprises are the “heart” of the American economy.
However, the head of the Federal reserve is confident that the measures of direct state aid “is not only to support households and business, but also to limit protracted damage to the economy”.
we Add that the outbreak of pneumonia caused by a coronavirus infection (COVID-2019), was formally recorded in December 2019 in the Chinese city of Wuhan. March 11, 2020, the world health organization (who) officially recognized the situation with coronavirus pandemic. To date, cases of infection were recorded in almost 200 countries and regions of the world. In General, the number of infected COVID-2019 in the world has exceeded 14.9 million people died more than 615 thousand. The pandemic has had devastating effects on the world economy. Under the powerful kick hit many industries, including transport, tourism, hospitality, automotive, construction, retail, and entertainment.
Stories about how you tried to get help from the Russian state in terms of coronaries and what came of it, email it to COVID-19@rosbalt.ru
