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.
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