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Thursday, October 21, 2021

Recession 2020 Amidst the COVID Pandemic?

The pandemic is worsening. Even the most developed countries are still reeling in economic shock induced by the outbreak of Coronavirus. The COVID pandemic has made the world economy plunge to unprecedented depths and the yearly per capita income has dropped by Recessionalmost 5.2% in 2020. According to the US economy forecast 2020, the country is about to be hit by the worst recession ever. The World Bank released the 2020 Global Economic Prospects reports. According to it, the economies of the developed nations are about to dip by 7% in 2020. More recession facts include severe disruption of trade, finance, and domestic supply and demand by Recession 2020, and so on. 

Is the US economy stable amid the recession of 2020 induced by the pandemic?

The financial outlook of the US is in a chaotic state. With more than a million Covid-positive cases being recorded every week, the US economy is struggling to stay afloat amid the Recession 2020. The United States National Bureau of Economic Research declared in their US economy forecast 2020 that a recession hit the economy of the US in February. The rate of unemployment has increased sharply according to the reports that reveal that millions of households neither have the money to pay for food or meet the house rent. The economic trends in the US suggest that the most severe economic impact has been upon the Black, immigrant, indigenous, and Latino communities. 

Recession 2020 in the US occurred as a result of the mass lockdown measures implemented by the government. Moreover, the lockdown forced the entire in-person non-essential economy of the US to screech to a halt. It began as a mammoth-sized supply-side shock. Then it metamorphosed into a sudden plunge in demand owing to the rapid deterioration in employment statistics. The recession began with the massive collapse of stock markets in February and March leading to complete stagnation of consumer activity worldwide. Hence, slowly the economies dwindled and hit depression or recession in the severest forms. Estimating by the financial outlook, at present, there are more than 10 million unemployed individuals in the US. The UN released some recession facts. It is anticipated that the worldwide unemployment shall erase almost 6.7% of working hours near the end of 2020. 

World Bank’s outlook on Recession 2020

The World Bank has declared that there will be a sharp drop in GDP. This would happen in almost over 90% of the World Economies. Hence, Recession 2020 is one of the deepest and darkest recessions in the world, and even worse than the Great Depression of the Second World War. Before the outbreak of the Coronavirus, unemployment was at a low level. Inflation was well under control, and burdens of household debts were manageable as well.

Is the US economy stable after 2020 and the COVID crisis? According to the US economy forecast 2020, it is now in the hands of the policymakers to usher in positive changes in the country’s economy. Additionally, they need to focus on additional financial measures.  Measures like reduction in taxes and implementation of a credible plan of fiscal consolidation. Such measures may help in reshaping the economic trends in the US amid the ongoing crisis. 


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Daniyel Carlson
Daniyel Carlson is a Young Researcher in the field of Data Science & Analytics having research experience of more than 8 years. He has a Masters in Computer Engineering and currently serves as an Editorial Assistant in IGI Global, United States of America. Daniyel also holds honorary positions in the Associate Member of Institute of Research Engineers and Doctors, International Association of Computer Science and Information Technology, International Association of Engineers, Society of Digital Information and Wireless Communications.

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