NEWS – CONSEQUENCES OF COVID-19 IN TEXAS ECONOMY.

Fonte foto – From Wikipedia, the free encyclopedia – Map of the outbreak in Texas by percent infected (as of May 7)

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What can we make of the effects of the current events surrounding COVID-19 after a month and a half of the first closure orders? Due to the public health measures, such as social distancing and shelter-in-place policies, demand declines had intensified and as a result, some economic sectors had come to a halt. At the same time, the energy industry was grappling with the oil war between Russia and Saudi Arabia as well as depressed demand for crude oil and gasoline.

Fonte foto – Wikipédia, a enciclopédia livre

With the release of the polices that were in place, Texas attempts to change the outlook of its future. The economic outlook is difficult to accurately gauge right now because economic data lags present day economic reality. The situation is changing daily, and there are so many unknowns. What we do know is that there are many industries that have been drastically affected. Some of the hardest-hit industries included service, hotels, restaurants and bars, and arts and recreation.

Fonte foto – Houston , Texas – Wikipédia, a enciclopédia livre.

According to survey data released March 30 by the Texas Restaurant Association, 2 percent of the state’s more than 50,000 restaurants already had closed permanently, and another 32 percent had closed temporarily. An additional 12 percent of Texas restaurants anticipated shutting down within the next 30 days. “Restaurants are in a fight for survival. The statistics from this survey provide a mere snapshot of the extreme economic impact the COVID-19 crisis is having on one of the most important industries in Texas,” Emily Williams Knight, president and CEO of the Texas Restaurant Association, says in a release.

Fonte foto – From Wikipedia, the free encyclopedia – Sixth Street  in Austin after all bars and restaurants were ordered closed

In the lodging sector, Texas is projected to lose 44 percent of its jobs, or more than 64,000 positions, according to a mid-March forecast from the American Hotel & Lodging Association. Experts predict some Texas hotels will not survive the coronavirus crisis. “COVID-19 has been especially devastating for the hotel industry. Every day, more hotels are closing, and more employees are out of a job,” Chip Rogers, president and CEO of the hotel association, says in a March 26 release.

Where Texas will go from here, only time will tell.

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Por Fabiana Richards