With the reduction in global economic activity due to the Corona virus (COVID-19), the reality of a recession is a common hot topic. The depth and breadth of a recession is dependent upon a number of factors. Our partners at National Bank Financial Economics offers a historical perspective.
“Will the ongoing coronavirus-related economic downturn also qualify as recession? We’ll have to wait some time to have an answerNational Bank Financial Economics, March 17th, 2020
from the CDHI. But if the March handoff is as bad as feared, we may get consecutive GDP contractions as early as Q1/Q2. Employment is likely to take a dive as well as businesses attempt to cut costs amid sinking revenues after operational shutdowns.”
Please contact your Hampton Securities Investment Advisor if you have any questions or concerns.