Coronakrisen continues to claim its victims.
Not only in terms of deaths. Economically, it has also tremendous consequences.
Unemployment is on the rise. Small businesses lose revenue, and may eventually go bankrupt.
Martin Haugaard is one of the faces of the crisis. He is the director of the cateringfirmaet Simply Cooking, that delivers food to among other companies and schools.
the Company making the food from a large kitchen in the newly built part of Nordhavn in Copenhagen.
En B. T. meet Martin Haugaard and his brother Lasse Hauggard out in front of the company kitchen, there is no activity at all. The kitchen is empty. Usually work 44 employees loose in the company in order to cook to, among other schools and companies.
“We went from having a millionomsætning to suddenly transform for zero dollars. It has been disastrous. A life’s work built up over 20 years was about to crumble in a second. The future is very uncertain,” says the 44-year-old Martin Haugaard.
‘A crumbled life’s work’ was the first thought that crossed the director, as the prime minister Mette Frederiksen Denmark closed down 11. march 2020. A few days later, came the possibility of compensatory. It saved the company and its employees in the first place.
the Brother Lasse Haugaard is the head of economy in Simply Cooking, and together, they are a part of a statistic, which gives the deep panderynker of economists.
When whole industries close down at once, a crisis is inevitable. Employees be fired, the state loses tax revenue, and on top of the hat gældsætter the state itself, because it must lend to the stimulus packages, which in the first place to alleviate the crisis.
To this must be added, that the rest of the world is also struggling with the coronavirus. Where Danish companies sell their goods and make money, there is also crisis.
According to an economist of the components to a deep economic crisis.
“The crisis we are seeing now, may be deeper than the financial crisis,” says professor of economics at the University of Aarhus Bo Sandemann Rasmussen.
The international monetary fund the IMF’s chief, Kristalina Georgieva, also believes that the world can look forward to an economic downturn that is as bad or worse than the financial crisis in 2008/2009. It writes Reuters.
Bo Sandemann Rasmussen estimates that there could come a decrease in the so-called gross domestic product (GDP) of about five percent. GDP is the total value of all this, Denmark produces goods and services in a year. It should rise a bit each year.
Last Denmark saw a decline in GDP, was in the aftermath of the financial crisis. Subsequently, the GDP fell by over five percent.
the Crises get people to hold on to the money, the economy freezes, and unemployment is rising. Finally, it took seven years before consumer spending once again came level with the time before the financial crisis. Before the optimism came back.
Quite as bad, it does not, however, to go with coronakrisen.
“the financial Crisis was a systemic crisis in the financial system. If smittefaren with corona virus goes away completely in a few months, so the world will have enough faster be the same again than after the financial crisis,” assesses the Bo Sandemann Rasmussen.
the Bill we do not, however. When the finance minister, Nicolai Wammen (S), intervenes deeply in the pockets with the stimulus packages of over 300 billion dollars, then he out to borrow in international financial markets. This is money that must be paid back in the form of principal and interest. Money the coming years to retrieve, either by savings in the public sector or increasing taxes.
“There is a large bill that must be paid subsequently. Denmark has, fortunately, a small national debt, so if it happens a single time, destroying our economy as in for example Italy, which has a large sovereign debt,” says Bo Sandemann Rasmussen.
“But become pandemics ‘new normal’, and that often must be recorded loans, then it becomes a big challenge for the Danish economy,” he says.
For Martin and Lasse Haugaard, the crisis is very real. Both here and now and the coming years.
“We have sent employees home with pay. It can only be because the state compensates to us, but it is definitely not free. We lose still of 300,000 crowns a month,” says Martin Haugaard.
the Brother Lasse Haugaard fear, what it is for an everyday life, there waiting when the smittefaren is over.
“for The next half-year, there is hardly time in bigger events and conferences, which we will deliver the food to. It puts us in a challenging situation over the summer. Afterwards, I think there will be a long time before we are back at the same level as before the coronakrisen,” says Lasse Haugaard.
Denmark is provisionally closed down until after easter.
