Deutsche Bank CEO gives grim outlook for the global economy – CNBC

Deutsche Bank CEO gives grim outlook for the global economy – CNBC

Christian Sewing, Chief Executive Officer of Deutsche Bank, attends a session at the 50th World Economic Forum (WEF) annual meeting in Davos, Switzerland, January 23, 2020.

Denis Balibouse | Reuters

The economy will not return to pre-coronavirus levels for a “long time,” the chief executive officer of Deutsche Bank warned Wednesday.

Business activity in the euro zone dropped sharply in the wake of the strict lockdown measures imposed in March, but have somewhat rebounded in recent months following the easing of certain restrictions. The United States has experienced a similar picture.

However, there are concerns that the slight rebound in activity will not last if new lockdowns and social restrictions are implemented once again or, more simply, if there is no vaccine or significant treatment put in place.

“A return to our old economic strength will take much longer than we assume today,” Christian Sewing, CEO of Deutsche Bank, said at the Handelsblatt Banking Summit.

“A lot of companies have to manage to live with reduced sales for quite a long time. We have to deal with an economic situation where we will have a recovery, yes, but only step by step and not in all industries,” Sewing warned.

The pandemic has wreaked havoc on the travel and tourism industry. Some analysts question whether the ongoing summer season is providing just a temporary lifeline to some hotels and other tourism-related businesses.

In addition, governments are planning to reduce some of the
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