After a month of varying degrees of lockdown of the Danish and the global economies, data and key indicators now paint an increasingly bleak picture of the economic consequences of Covid-19.
In Denmark, around 45,000 workers have lost their jobs, and the number would be a lot higher if employees sent home on state-sponsored pay compensation schemes were included, says chief economist at Danske Bank, Las Olsen. In neighbouring Norway, where state-aided pay compensation schemes are more generous, some 350,000 workers are currently on paid leave, and although the numbers do not compare one to one to Danish numbers, they are nonetheless an indicator of the situation in Denmark, says Las Olsen.
Optimism on the financial markets
In the US, where more than 22 million Americans have filed jobless claims over the past month, the economic data also points to an extreme economic contraction with a huge falls in retail sales and a decrease in industrial production output not seen since 1946.
”A month into the general lockdown, the situation continues to be very bad as far as we can see. We are starting get actual economic data for March, and it points to an extreme contraction with a fall in retail sales of 8.7 percent and a fall in industrial output of 5.4 percent”, says Las Olsen.
Meanwhile, US stock markets are up 23 percent since their low in March, a movement also seen in stock markets elsewhere.