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ECONOMIC IMPACT OF COVID19 ON UNITED STATES , SO FAR.

~ Khushi Jain



Developing nations were doing well with their increasing GDP and they were at their best until the wake of 2020. The year 2020 brought with itself something that the world was not ready for, a contagious virus termed as Novel Corona Virus. Back in January 2020 it was something that was a mystery to everyone but now it’s known at every corner of the world what this virus can do. Corona Virus has infected a lot of people and has throttled the global economy. This disease has caused millions of deaths, shutting down of small as well as big businesses and people losing their jobs or seeing a cut in their income. Novel Corona Virus not only proved to be hazardous to world health but also to the world economy. The virus has been successful in toppling the global economy upside down.


The superpower countries like USA, Russia, China and UK are experiencing a harsh deterioration in economic performance due to the pandemic. Talking about United States which now is second largest economy in the world as China has outperformed U.S. current GDP statistics, the economy of U.S. took a downturn during the lockdowns which were put to reduce the spread of coronavirus. The pandemic has caused the biggest blow since the great depression. The unemployment rate skyrocketed tremendously in the months of April and May . Although there have been a subsequent decline in unemployment rates in July but the rates are still higher than they were during the financial crisis of 2008-2009. 1 of every 6th American worker is currently affected by the continuous decline in the labour market. A huge decrease in consumer spending has been observed as people stayed at home, avoided going to crowded places and traveling as the virus continuously spread has plummeted the economy rate . United States currency’s relative appeal has also declined due to all time low interest rates and current inflation policy. 



The U.S. economy picked up some momentum in May as businesses reopened and most of the activities resumed.  The labour market condition improved by the end of July.  USA alone released funds ,for their battle against the covid-19 virus, in the form of unemployment benefits, health care, rental assistance, mortgage relief, extended time period for tax payment etc. Almost 30 million people are collecting employment benefits also the extension for tax payments have also given time to Americans to sort through the economic havoc. President Trump issued a series of presidential directives at the starting of August to prolong the extended employment benefits. This helped them bring their economy a bit on track. The fight of the world against the covid-19 virus is still not over but with an optimistic approach all the parts of the world have started re-opening their economy to get everything back on the right path slowly. 



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Comments

  1. Unknown1/9/20 7:36 PM

    Very informative
    Nice research and fantastic drafting by the writer! Keep up!

    ReplyDelete
  2. Unknown1/9/20 7:50 PM

    Amazing article!!!

    ReplyDelete
  3. Unknown1/9/20 7:58 PM

    Good information 👍

    ReplyDelete

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