McKinsey to develop economic reopening plan for Covid-19 hit New York

The consultancy is producing models on Covid-19 testing, infections and other key data points that will underpin decisions on how and when to reopen the region’s economy

A person stands at Brooklyn Bridge Park in the Brooklyn Borough of New York, U.S., on Wednesday, April 15, 2020. New York City may lose a half-million jobs and run about $10 billion short on tax revenue through mid-2021 because of the coronavirus outbreak, the city's Independent Budget Office estimated. Photographer: Stephanie Keith/Bloomberg
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New York Governor Andrew Cuomo has hired high-powered consultants to develop a science-based plan for the safe economic reopening of the region that can thwart expected pressure from President Donald Trump to move more rapidly, state government sources told Reuters on Wednesday.

Mr Cuomo, along with many other US governors, shut his state economy to limit the spread of the deadly Covid-19 virus and has warned that he is are prepared to keep businesses shut – perhaps for several months more – unless he can assure public safety.

Governors from seven East Coast states formed a coalition on Monday, led by New York, to develop a joint reopening plan. Three governors from the West Coast formed a similar plan. The 10 states, mostly led by Democrats, together make up 38 per cent of the US economy.

As part of Mr Cuomo’s effort, McKinsey is producing models on testing, infections and other key data points that will underpin decisions on how and when to reopen the region’s economy, the sources said.

Mr Cuomo has also recalled three former top aides: Bill Mulrow, a senior adviser at Blackstone Group; Steven Cohen, an executive vice president and chief executive of MacAndrews & Forbes; and Larry Schwartz, a deputy Westchester County executive.

Deloitte is also involved in developing the regional plan, a source said.

The goal is to “Trump-proof” the plan, said an adviser to New Jersey Governor Phil Murphy.

“We think Trump ultimately will blink on this, but if not, we need to push back, and we are reaching out to top experts and other professionals to come up with a bullet-proof plan,” to open on the state’s terms, said a Cuomo adviser.

Mr Trump, whose reelection bid was built on a strong economy before it was derailed by the epidemic, is losing patience with the economic blackout and has challenged governors who are preaching caution, setting the stage for larger clashes over the pace of the reopening.

Mr Trump said in late March he hoped to reopen the economy by Easter in mid-April, but the mounting toll of infections and projected deaths forced him to extend federal guidelines for 30 days to the end of April.

More than 30,000 people have died in the United States from the epidemic.

McKinsey is providing analysis on testing availability and demand across the state, supply chain for critical supplies, hospital capacity and virus projections, a company official said.