COVID-19 is what type of business risk? How it affects the business and economy as a
whole.
Answers
Answer:
Governments worldwide have already allocated more than $13 trillion to stabilize economies in freefall and restart growth. These measures, written and delivered at speed, have succeeded in many ways. But as the crisis drags on, new questions are arising. Is the money directed in the best possible way? And is more needed?
This week, McKinsey researchers looked at ways to fill the gaps that COVID-19 has created in US state budgets. Worldwide, we estimate that government deficits could reach $30 trillion by 2023. That’s a sobering figure. But we believe that if governments and the private sector work together as never before, they can avoid the disastrous consequences of massive deficits, lay the foundations for a new social contract, and begin to shape a postcrisis era of shared, sustainable prosperity.