Mnuchin believes that the outbreak of coronavirus will affect the economy only in 2020

UNITED STATES (OBSERVATORY NEWS) — The negative consequences of the outbreak of a new coronavirus will affect the economy of the United States and other countries only this year. This opinion was expressed on Wednesday by US Treasury Secretary Steven Mnuchin.

“I do not expect coronavirus to have an impact [on the economy] outside of this year,” the minister said, speaking at a hearing on the Senate Finance Committee of the US Congress. He was asked how long the consequences of the scandal around the American aircraft manufacturing concern Boeing and the spread of the new coronavirus will be felt in the US economy. “This will only affect 2020. <…> Neither the coronavirus, nor the Boeing issue will affect growth over the next 10 years,” Mnuchin said.

From his point of view, more specific forecasts will follow in two to four weeks. “On the one hand, there are certain aspects that cause much more concern than was the case with SARS (severe acute respiratory syndrome, or SARS – approx. TASS). On the other hand, China, it seems to me, began to take measures much earlier I think it will take another two to four weeks to obtain [additional] scientific data. After that, we will be able to draw conclusions much better. There is no question that China [the outbreak] has a significant impact, and we certainly closely monitor the spread virus, “the minister said. “I believe,” he added, “that it will take us three to four weeks [more] to get the data in order to be able to make more concrete conclusions.”

The COVID-19 outbreak was recorded in the large Chinese city of Wuhan at the end of December 2019. The World Health Organization recognized it as an emergency of international proportions, describing it as an epidemic with many foci. Outside of China, cases of infection were detected in 24 countries, including Russia. The Chinese authorities have already confirmed more than 44.6 thousand cases of infection with a new coronavirus, more than 1.1 thousand infected have died, more than 4.7 thousand people have recovered.

In December last year, Boeing announced that it would temporarily stop producing 737 MAX aircraft for the time being from January. Operation of the Boeing 737 MAX was suspended after two disasters. March 10 last year in Ethiopia crashed a Boeing 737 MAX 8 airline Ethiopian Airlines, killing 157 people. On October 29, 2018, 189 people became victims of a plane crash of a similar Lion Air model in Indonesia. Boeing management acknowledged that in both cases on board aircraft, before they crashed, there was a malfunction in the maneuverability improvement system. After that, many countries, including Russia, the United States and the European Union, for safety reasons, suspended the operation of aircraft of this series.


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