When consumers drive 70% of economic activity, as they do in the U.S., any significant disruption to peoples’ lives will have a corresponding impact on the economy.
That is certainly the case with the coronavirus outbreak, which has created rapid, widespread, and severe economic disruption.
As a result, CUNA economists have revised their 2020 economic growth forecast from 1.8% to -2.25%. They also adjusted their outlook for the unemployment rate from 3.5% to 6.5%.
In this episode of the CUNA News Podcast, three CUNA economists examine the extent of the disruption, provide an updated forecast for the economy, and discuss implications for credit unions.
They are Samira Salem, senior policy analyst; Jordan van Rijn, senior economist; and Mike Schenk, chief economist and deputy chief advocacy officer.
In this episode:
1:15: Are we in a recession?
5:17: What are the implications for credit unions?
9:15: How to mitigate the financial impact of COVID-19
10:50: How financial challenges will affect different populations
14:13: Lessons we can apply from the Great Recession
16:02: Biggest concerns and reasons for hope
21:29: Use the credit union difference as an advantage
25:29: Engage the board and document your efforts