The year 2020 is surely one of the worst years for economies and the world that has caused a huge pandemic due to COVID-19. US economy has suffered a lot due to the coronavirus than what a decade in the first quarter. The spread of the coronavirus has to lead to complete lockdowns for preventing its further spread.
A full crisis has been recorded according to figures recorded as many restrictions were not placed in starting of the year. We are discussing how coronavirus has hit hard US economy by taking a look at different aspects. For obtaining complete information, consider reading details until the end.
Coronavirus and US economic growth!
The new spending of nearly $3tn of the US has surely blown the economy, which includes direct payments to several families. The federal reserve also turned the emergency steps such as lowering interest rates to zero almost. Federal Reserve chief said that the bank would maintain levels until confident that the economy has overcome recent events but added that the ongoing crisis weighs heavily on the economy.
Unemployment in the US during the COVID-19 pandemic!
More than 26 million people in the US filed for unemployment since mid-march, and several declines have been encountered in business activity and consumer confidence. The growth of contraction is reported to be more than 30%. Economist chief shared that economy is flattened and has become an active part of slowdown globally due to the coronavirus’s pandemic.
Not only the US but China, Germany, India, and several countries of the world have suffered from the GDP recession this year.
In the year 2020 US economy was likely to grow about 2%, which was knock off with the coronavirus. Several job opportunities were cut down, and a considerable number of revenue has fallen. Businesses have got serious hits due to pandemic and showed an adverse impact even on airline industry customer demand, production continuity along with supply chain stability.
However, even after the steep declination into the share prices that were reported in the year starting now, it has started increasing. Fed’s intervention gain is reflecting but not for the forecast economy.
The consumer department has dropped by the number of 7.6% in the first three months of lockdown in the US. The expenditure rate of food services and accommodation has fallen more than 70%, whereas clothing and footwear purchases have dropped more than 40%. Even the healthcare services have been affected even though the virus spread, people had canceled their routine treatments and other medical care services and making the healthcare industry a serious concern for the economy.
However, the government expects to see the economy’s progression with unlocking practices as they are revising the new data. A dead drop declination of the US economy has been suffered, but not much can be said until now. The damage caused to the economy wouldn’t be known for years until we see more of it.
These are some of the essential details regarding the US economy’s hard-hit caused due to pandemic caused by COVID-19. We hope you find the details stated above helpful in learning more about the US’s economic crisis.