Report
Will the structure of demand change after the coronavirus crisis?
Will the structure of demand be the same after the coronavirus crisis as before ? Of course we can only make assumptions for now . But it is reasonable to think that: Companies will reduce their investment if they are more indebted; Households will be reluctant to borrow if they remain highly risk averse and will therefore reduce their purchases of housing and durable goods (cars, major household items, etc.). There would then be a fall in the share of durable goods (in the broad sense : companies’ and households’ capital goods, housing) and an increase in the share of current consumption (non-durable goods) in domestic demand. After the 2008-2009 crisis, such a fall in economywide demand for durable goods was observed in the euro zone but not in the United States.
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Natixis
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Patrick Artus
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