Coronavirus Economic Effect Worse Than 2008 Recession, Garcetti Says During State of the City

Los Angeles Mayor Eric Garcetti said the economic effects of the coronavirus will be worse than the 2008 recession, as part of his State of the City address Sunday.

City revenues have “plummeted” and hotel reservations have dropped significantly, he said. The mayor said airport traffic had dropped 95%.

Garcetti also said city departments will have to operate on significantly reduced budgets in the next fiscal year.

Garcetti says during tonight’s State of the City address that as many as 300,000 Los Angeles city residents may be unemployed due to the coronavirus pandemic, worse than the height of the 2008 recession.

Unemployment reached a high of 13.5% during the Great Recession in Los Angeles, but the current unemployment is even higher, the mayor said.

The mayor said that large gatherings may not be allowed for months and that a vaccine was still a year or longer away. However, Garcetti said that he would not isolate the population for another six months. The mayor announced a five key elements to returning the economy, starting with testing for both COVID-19 an the antibodies for the virus.

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