Corona will leave economic scars “for decades”

Although the corona pandemic is a health crisis and not a financial crisis as such, the economic consequences will have far bigger economic repercussions than the 2008 credit crunch.

This is the view of former BankNordik committee chairwoman, Stine Bosse.

“Everyone is affected. The economic cogwheels across the world – the big ones and the small ones – have stopped turning, and this is something none of us have ever experienced before,” she says.

 >> SEE ALSO The Treasury can withstand deficits and debt

The Faroes deserve praise for how they have handled the health crisis, says Bosse. But the real test lies ahead, and it involves how the reopening of the economy is handled.

“This success depends to a great extent on whether the authorities manage to save the tourism industry while also keeping up the profitability of the fishery industry.”

She is convinced that the Faroese economy is strong enough to withstand a major crisis like this one, and she believes that after an economic downturn for about two years, things will start to brighten up again.

“Things will return to normal with healthy economic prosperity, but if you ask me how long we’ll be feeling the repercussions of the current crisis, I would say at least two decades.”

Translated by prosa.fo