US economy:As Covid-19 travels the world it has opened a Pandora box ,causing severe damage to life and property, health department of every country,where this pandemic has infected thousands and killed hundreds, is in turmoil. Each country’s expenditure and policy is severely limited to it’s scarce resources. While the world’s most affluent economies like The United states are in an incessant battle with the virus.The economy of the United States is in a deep crisis right now.
The economy has shrank at a 4.8% annual rate in the first quarter of 2020. The coronavirus outbreak has shut down almost every operation in the country and began triggering a recession. The forecasters say that the drop in the first quarter is only a precursor of a way more depressed second quarter whose GDP report will be based on April to June period, with business Shutdowns with a high rate of unemployment striking the country with treacherous powers.
The gross domestic product, or the GDP, posted a decline for the first time in the last six years. It is also the sleekest fall after the Great Depression of 2008 where the US economy declined at an 8.4 % annual rate in the fourth quarter.
The congressional budget office has estimated a devastating plunge of 40% annual rate in the current quarter of the year. If this comes out to be true, it would be the darkest quarter in the history after 1947. It would certainly be four times the size of the worst quarterly contraction on record set in 1958.
As the economies all over the world, are dragged into what looks like a severe recession, some experts still remain optimistic. Holding a hope that the recovery will be quick and robust after the settling of the spread. This is called to be a V shaped recovery.
Many people, would naturally prefer to not travel, shop at stores or visit restraunts or movie theatres even after the official permission would be granted. Coming back on tracks and pulling in customers will be a challenge for cafes and bars, even though home delivery will be all the rage after the coronavirus outbreak is under control. But at the same time, precautions are a must.
The re-emergence of the coronavirus after the economy is reopened is also feared. President Donald Trump told the reporters that he expects a massive increment in gross domestic product of the country in the third quarter. Similarly, the fourth quarter and 2021 too will bring prosperity, he says. He is also preparing for re-election campaigns by claiming to build a powerful and strong economy and promising to do so again after the settlement of the health crisis.