Financial experts forecast coronavirus impacts on economy
Flynn Says UND Will Be Releasing Research Data And Financial Estimates For The Coronavirus Later Next Week
GRAND FORKS, N.D. — The emergency declaration by President Trump and by both North Dakota and Minnesota are leaving businesses and people worried about their future.
UND Economics and Finance Professor David Flynn says the virus is making some waves in every part of the economy.
“I think we will be in for a period of volatility whether you wanna talk about your local grocery store or you wanna talk about wall street but you will be in a period of for at least a few weeks if not several months,” Flynn said.
Flynn says over time, things will eventually get back to normal.
However, the short term damage can leave a potential lasting impact on smaller businesses.
“One of the big issues will be whether these businesses have business interruption insurance or whether they have contracts that will let them out of certain obligations,” Flynn said.
Flynn says another big problem being created by the virus is the growth of panic-buying that’s leaving shelves empty.
“Panic-buying induces other peoples panic-buying. That’s part of the concern that people get concerned that other people will panic buy and deplete stocks on shelves then you will see people do the same thing as well,” Flynn said.
He says hourly workers and those working paycheck to paycheck are in a vulnerable position due to the outbreak hurting businesses, especially for those being asked to work from home.
“That they are going to be more dependent on the paycheck and that business interruption becomes even more critical and dangerous for their financial situation,” Flynn said.