Wednesday, May 20, 2020 – 11:00 AM
I Photo: Photonews I. by Editorial
Permanent damage to the economic fabric, a wave of bankruptcy and many layoffs as a result: that is what the National Bank in De Morgen paints about the consequences of the corona crisis. After all, the restart is slower than hoped.
The average decline in turnover of the companies is unprecedented. It is no less than 30 percent. The reopening of companies and shops will therefore not yet have a major impact on turnover. This means that the economy is in a dead end and is not yet on the move. The V-curve will therefore not come. This means that we do not get a rapid increase after the rapid decline.
Moreover, there is great uncertainty about the future. Investments are put on hold, especially by large companies. The National Bank announced last week that 180,000 employees and 70,000 self-employed persons are at risk of unemployment.
The government must come up with even more support measures, which will cause the budget to go badly into the red. The government will therefore have to cut its expenditure and increase its income. So that means: raising taxes.
What is your opinion?