How COVID 19 has Affected US Economy
The COVID 19 has caused the most significant blow to the US economy since the Great Depression. The COVID 19 status of the United States was high. Coronavirus affected both public health as well as the economy of the United States. However, the economy of most of the countries is decreasing due to pandemics. But the US faced the worst impacts of economic states after a while. The worst thing is that according to some economists, it will be a huge challenge for the US to get back to the same state of the economy as it was before COVID 19.
Historic Decrease in Economy:
According to the National Bureau of Economic Research (NBER), a recession was started in February. The primary reason behind this was a decline in goods and services output. At the start of 2020, the US declined 5% in its economic status as it is clear that COVID has proven as an emergency for most countries. Another fact is that COVID impact was at a peak in the United States when comparing it to other nations. As a result, the United States economy contracted a record, i.e., 31% annual change in the second quarter. Considering this decrease is historical, the proof is the GDP drop more significant than 10% since record-keeping began in 1947.Economists warned the government that the economy might not return to its normal position as it was in the past. The Federal Reserve forecast may rise to 0.3% in 2021, a good sign for the United States in the upcoming days.
In April 2020, more than 40% of the businesses were closed temporarily after access the situations. The impact of this was felt by retail, entertainment, restaurants, and personal services. According to a survey by Proceedings of the National Academy of Sciences of the United States of America (PNAS), 1/3 of all USA businesses had only two-month of survival cash.
In the era of 2020, the US has a record of unemployment. Americans filed 3.3 million unemployment insurance during earlier 2020. As most of the businesses shut down in response to the pandemics, the unemployment was increasing day by day.
According to the US Department of Labor, the US records a history of unemployment of 695,000 people per week.
Stock Market Crash:
At the start of 2020, the stock markets of the United States were setting new records. Soon after the declaration of national emergency due to COVID. The stock market face three works points losses in a single week.
Oil Price Collapse:
In 2020 price of the oil was $65 per barrel. However, after the pandemic, the price reduced dramatically. Because of businesses' shutdown and the striction of travel across the world. In the middle of 2020, the oil price was -$37 barrel in the United States. However, these prices are recovering recently. The export of oil industries was declining day by day.
According to economists, it is a challenging task for the new government to get back to the previous status of the United States' economy after a huge recession. It may prove as the biggest challenge for the new President Biden.