On his way to recovery ... the second Corona wave could destroy the US economy 

It is never an exaggeration to expect a severe economic recession in the United States due to a new wave of the emerging Corona virus, but it seems that the optimistic outlook of the President Donald Trump's administration is withholding it from seeing the dangers.

In a report published by the American National Interest magazine, author Desmond Lachman emphasized that the specter of a second wave of Corona virus haunts the United States and the world's economies, but what is worrisome is the Trump administration's optimistic speech, which sees the economy on the cusp of a state of recovery after passing a recession. It is the worst in decades.

A second wave

The Covid-19 pandemic is far from over, as cases continue to escalate rapidly around the world, and 21 US states are experiencing an alarmingly increasing epidemic.

Even China has not succeeded, despite the stringent measures it has adopted over the past period, to control the virus, and it is still recording new cases.

The author explains that the risk is still present strongly, as many epidemiologists warn that the widespread and rapid easing of quarantine procedures may lead to increased rates of infection.

In his view, the second wave of the epidemic would be a major blow to the American economy, which is still looking to recover from the effects of the first wave.

He adds in this context that the second wave will have severe consequences for the main sectors, especially the services sector, even if it did not lead to complete economic paralysis, as happened last time.

In the absence of any effective vaccine yet, people will be less inclined to travel and attend conferences and sporting events if a second wave occurs, and losses will be severe for American universities in the event of continuing distance education.

The writer expected that the real estate sector would suffer in turn more stagnation, as the American economist witnessed a rapid transformation towards digitization and remote work after the first wave, and the number of online shoppers increased, and the expected results of these transformations are the decrease in demand for commercial real estate and the decline in construction work.

Impact of emerging markets

The expected second wave of the Corona epidemic - at the global level - will increase the chances of the American economy being exposed to a new shock, as supply chains on which the manufacturing sector in the United States depends will again be disrupted.

More seriously, the American economy can be severely affected by the crisis experienced by emerging markets in Asia and Latin, and much more than in previous global crises, as the continuation of the current crisis will lead to the failure to pay the economies arising from the payment of their debts, which could threaten The American and global financial system.

And it's not just the emerging markets, as the last heavily indebted southern European country - like Italy - is the second wave of the pandemic, and if the Italian sovereign debt crisis deepens, the impact will be evident on the American economy, according to the author.

The writer expressed his hope that the Trump administration will not insist on its optimistic outlook on the recovery of the economy in the coming period, stressing the need to develop contingency plans that enable it to respond quickly and effectively in the event of the economy faltering again due to a second wave of the emerging corona virus later this year.