US CEOs Say Economic Recovery from COVID-19 Expected by End of Next Year

27% Also Claim Recovery Difficult After Next Year
Director Fauci: "Herd Immunity May Be Difficult Even With Vaccine"
US Daily New COVID-19 Cases Slightly Decrease to 30,000 Range

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] CEOs of major U.S. corporations have expressed concerns that the economic impact of the novel coronavirus (COVID-19) will continue until the end of next year. Unlike the U.S. government's expectation of a V-shaped rapid economic recovery, business leaders anticipate that more time will be needed.

The Business Roundtable (BRT), a group of CEOs from major U.S. companies, announced on the 29th (local time) that in a survey of its members asking "When do you expect your company to recover to pre-COVID-19 levels?", most responded with late 2021.

27% of CEOs answered that they do not expect recovery even after late 2021.

In a press release on the same day, BRT pointed out that the sharp increase in infection rates in some regions suggests the need to reassess economic normalization plans and adopt extensive safety measures. According to CNN, 12 states including Texas, Florida, and California have halted the expansion of economic activities, such as suspending bar operations.

CNBC interpreted the survey results by stating, "The lack of consensus and significant disagreement among the most powerful business leaders in the U.S. reflects how uncertain the economic environment is."

BRT's Q2 "CEO Economic Outlook Index" also reflects CEOs' negative outlook. The CEO Economic Outlook Index, which comprehensively shows major U.S. companies' plans for capital investment, employment, and sales forecasts over the next six months, recorded 34.3 in Q2 this year, dropping a staggering 38.4 points from Q1. This is the lowest figure since Q2 2009, during the height of the global financial crisis.

Meanwhile, according to data compiled by Johns Hopkins University, new COVID-19 infections in the U.S. surpassed 40,000 daily for three consecutive days recently, but slightly decreased to 38,800 on the 29th, though vigilance remains necessary. Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases (NIAID) under the U.S. National Institutes of Health, expressed concerns in an interview with CNN that "even if a vaccine is developed, herd immunity may not be achieved."