Frances Donald, Manulife Investment Management global chief economist, and CNBC's Steve Liesman join 'The Exchange' to discuss what the August jobs report signals about the economy, whether we are heading into a recession, and more....(read more)
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The global economy has been hit hard by the ongoing COVID-19 pandemic, leaving many experts predicting a potential recession. Among these experts is Frances Donald, Chief Economist and Head of Macroeconomic Strategy at Manulife Investment Management. In a recent interview, Donald expressed her concerns about the future economic outlook, stating, "I do see a recession ahead." Her analysis comes as no surprise, considering the unprecedented nature of the current crisis and the severe economic impact it has had on countries worldwide. Donald highlights a variety of factors that contribute to her belief in an impending recession. Firstly, she notes the massive disruption the pandemic has caused in global supply chains. The shutdown of factories and businesses around the world has led to a significant decline in economic activity and a sharp increase in unemployment rates. Furthermore, Donald points out that the severity and duration of the recession will largely depend on the extent of further outbreaks and the effectiveness of containment measures. As we are witnessing a resurgence of COVID-19 cases in various parts of the world, the potential for additional lockdowns and restrictions looms large, which could further dampen economic growth. Another concern raised by Donald is the potential for a prolonged period of subdued consumer spending. With job losses and income reductions becoming rampant, individuals and households are likely to adopt a cautious approach towards their spending habits. This decrease in consumer spending can have a ripple effect across industries, leading to decreased revenues and potential bankruptcies. Donald's insights reflect the prevailing mood among many economists and experts who are warning of a challenging road ahead for the global economy. The International Monetary Fund (IMF) has already projected a 4.9% contraction in global GDP for 2020, a much steeper decline compared to the Great Recession of 2008-2009. To mitigate the impact of the looming recession, Donald suggests that policymakers should focus on implementing effective fiscal stimulus measures. Governments around the world have already committed trillions of dollars to support their economies, including direct cash transfers, loans, and grants to businesses, and financial aid to vulnerable households. Moreover, Donald emphasizes the significance of enhanced healthcare systems and robust testing and tracing capabilities as crucial tools for managing the pandemic. Without these measures, containing the virus and restoring economic activities will remain challenging, prolonging the period of economic hardship. However, Donald remains cautiously optimistic. She emphasizes the importance of adapting to the new normal and acknowledging the opportunities that arise amid the crisis. She notes that businesses that embrace digital transformation and effectively pivot their operations to meet changing consumer needs are more likely to thrive in the post-pandemic era. While the road to recovery may be long and arduous, economists like Frances Donald play a vital role in providing valuable insights and guidance to navigate through these uncertain times. As we brace ourselves for potentially challenging economic conditions ahead, it is important to heed their advice and implement appropriate measures to mitigate the impact and eventually emerge stronger. https://inflationprotection.org/manulife-investments-frances-donald-predicts-an-impending-recession/?feed_id=137425&_unique_id=65089547afe17 #Inflation #Retirement #GoldIRA #Wealth #Investing #breakingnews #business #CNBC #economy #Finance #investing #kellyevans #money #news #newsroom #politics #Stocks #theexchange #WallStreet #RecessionNews #breakingnews #business #CNBC #economy #Finance #investing #kellyevans #money #news #newsroom #politics #Stocks #theexchange #WallStreet
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