Recession fears high all the time, 64% fear long-term damage from corona crisis

There are growing fears of a recession. Some 64 percent of German nationals now fear that the corona crisis will have negative consequences for Germany in the long term. Within the last two months, search volumes for the term “recession” have increased by 525 percent, as can be seen in a new infographic from Kryptoszene.de.

At the same time, it is not only citizens and private investors who fear economic collapse. The cash ratios among major investors are higher than they have been since September 11, 2001. According to data from the Bank of America, these investors upped shares of cash from 5.1 percent to 5.9 percent in April. The equity ratio among these large investors is at its highest level since March 2009.

About two thirds of German firms fear a 55 percent decline in revenues across the second quarter on average, according to a survey by the Kantar Group.

Although Europe could also be severely affected, analysts expect particularly substantial turbulence in the United States of America. They predict that the number of insolvencies in the USA will rise by up to 25 percent, compared to a forecasted rise in bankruptcies of 19 percent in Europe.

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