Coronavirus could cost New York State $243 billion
Coronavirus is expected to crush New York’s economy for years to come, according to a new report from the state’s budget office predicting a whopping $243 billion loss from the pandemic.
The sum is equal to 14 percent of the state’s gross domestic product — and its loss is likely to usher in a wave of deep spending cuts, officials said.
Without federal assistance, the recession caused by COVID-19 will be worse and the recovery longer than the 2008 financial crisis and the economic impact of the Sept. 11 terror attacks, according to the state.
“Our efforts to stop the spread of the virus are working to save lives, and now we are also addressing the economic realities the pandemic is causing as we move New York forward and build back better than before,” said state Budget Director Robert Mujica, noting the state must balance its budget.
State agencies will slash operations by 10 percent, and more than $10 billion in spending reductions are expected, with money for schools, health care, transit, nonprofits and local governments slashed.
Source: Read Full Article