25 May 10 medium to longer-term implications from the coronavirus shock
Key Points:
- Key medium to longer-term implications flowing from the coronavirus shock are: lower for longer interest rates; a further blow to globalisation; another leg up in the US/China cold war; bigger government and public debt; a long-term risk of higher inflation; consumer & investor
caution; faster embrace of technology; bad for airlines; another test for the Eurozone; and lower immigration. - Some of these will constrain economic growth but the faster embrace of technology is positive for growth.
