Observers call the economic growth of the United States (US) would be ‘devastated’ because of the corona virus pandemic, especially in the first and second quarters of 2020.
Economist Goldman Sachs, for example, projected negative US real economic growth of 9 percent in the first quarter and continued to 34 percent in the second quarter.
This condition occurs, because many companies take the path of termination of employment (FLE). The number of unemployed in the US has certainly increased.
Wednesday (1/4), the economist assessed the impact of co-19 disease was indeed not reflected in US monthly data. But it will be felt on a quarterly release for two consecutive quarters.
Not surprisingly, recent consumer reports indicate that the US is still quite confident at this time. Likewise with the monthly employment report, where the data does not or has not shown a significant downward trend.
Moreover, the survey period in making the report was conducted in the second week of March. At that time, the US only realized that there was a big threat from the corona virus and that keeping physical distance between residents had not been implemented.
However, by the middle of this year, he predicted the unemployment rate would rise to 15 percent. Just last week, there were 32.8 million Americans who applied for unemployment benefits.
Chief Economist of Moody’s Analytics projects that there are 4.5 million people affected by layoffs filing for unemployment benefits this week. That number will be the highest in history.
The US government needs to immediately realize the various stimulus that has been promised to all levels of society affected by the spread of the corona virus. One of them is a loan for small businesses.
The problem is, now it has entered the beginning of the month. That means it’s time for businesses and consumers to pay off debt repayments to banks. However, emergency funds promised by the US government have not yet been disbursed.
See, in just seven weeks the stock market fell to a record high. Dow Jones index movements recorded the most severe because it dropped more than 30 percent.
This whole economic situation is unprecedented. Economists claim to have no guidance in dealing with the present situation.