Expert: The dollar and the US economy are not immune to Corona

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The American economist, Stephen Roach, said that while the hopes of the Corona vaccine are pushing the markets up to achieve strong profits, the US economy is still in a vulnerable situation due to the epidemic.

Roach believes that the increasing number of Corona injuries in the United States may lead to the country being closed again, and the consequences will definitely affect the American economy, indicating that it is in an unvaccinated situation and that it is vulnerable to setbacks.

The expert stated that these setbacks reflect the continued weakness of the recession with the possibility of aftershocks, explaining that the recent record recovery that hit the economy after the sharp downturn was only technical, in light of the continued failure of the services sector to work properly.

The expert expects a 1% contraction in the largest economy in the world in the first quarter of 2021. He also expressed pessimism about the fate of the dollar, and predicted a decline of more than 30% until the end of the next world.

Adding, that since the Corona pandemic destroyed global markets in March, the value of the dollar has fallen by more than 10%, according to the “Index” index, which measures its value against a basket of currencies.

“These are only the early stages, and the pressure on the dollar is likely to be more intense,” Roach concluded.

Source: RT



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