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The IMF assessed the impact of coronavirus on the US economy

The possibility of an increased outbreak of coronavirus infection is a major risk to the US economy.

This statement is contained in the report of the International Monetary Fund (IMF), which the organization's specialist compiled after a visit to the United States.

The document says that the main problem in a new outbreak of the disease will be restrictive measures that will lead to the shutdown of many people, especially vulnerable categories of the population.

There are already urgent worrying signs that the depth of the economic downturn and the distribution of economic losses by sector will lead to a systemic increase in poverty, which will add to the macroeconomic risks, the report says.

The author points out that the risk associated with coronavirus is difficult to quantify, but it is very serious. The document notes that, despite the efforts of the US authorities, who are cautiously resuming the work of certain sectors of the economy, in recent weeks, the increase in the number of cases leads to the need for new restrictions.

This development in the future may lead to a decrease in tax revenues to local budgets, which will create economic difficulties in the current and next year. The volume of support packages combined with a low level of nominal GDP will lead to a jump in the ratio of American debt to GDP. Low-interest rates will allow the economy to “breathe” for a while, but then the US authorities will have to make difficult political decisions to reduce spending and increase revenues — including, perhaps, by raising taxes and duties.

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