US Economy frozen due to Coronavirus Pandemic
Due to the spread of coronavirus pandemic, around 30% of the US economy has come to a halt in the last couple of weeks. As the Government announced lockdown, it forced non-essential stores and businesses to shut down.
The Moody’s report states that around 80% of the US citizens are currently under lockdown. In more than 40 states, orders vary regarding degrees of lockdown in an attempt to promote social distancing. As social distancing cannot help in treatment, but it is instrumental in stopping the spread of Coronavirus.
According to the reports, losses vary from state to state. California itself has lost around 32% of its GDP output as the maximum part of the country is under lockdown. Record-breaking unemployment, contraction in the service and manufacturing sector, and steeply decrease in confidence indicates towards the recession. It will hit the US economy very soon as the collapse of the labor market begun.
Top things to know:
- Almost 80% of Americans are under lockdown in some form of orders.
- In just a few couples of few, US economic output and the US economy fell drastically.
- More than 365,000 confirmed cases of Coronavirus and around 10,800 people fatalities reported.
- Never in the history of the United States, 10 million people or more claimed unemployment benefits.
- Federal Reserve has already cut the interest rate to zero percent.