The US economy got the biggest shock since the Second World War

News

The US economy got the biggest shock since the Second World War

04.08.2020 News

According to a report by the US Department of Commerce on Thursday, the fall in gross domestic product (GDP) for the period from April to June (2nd quarter) amounted to 32.9% compared with the same value last year.

Economists have noted that it is the strongest decrease since the government started to keep records in 1947, after World War II. Earlier in US history, GDP has never declined more than 10%.

However, a value of 32.9% was expected, since the average estimates of analysts were 34.1% drop in GDP.

Looking back on the first quarter (January-March 2020), the fall in GDP was only 5%, as the pandemic crisis in the country began in early March.

In June, National Bureau of Economic Research declared February 2020 the beginning of a recession in the United States and the end of an almost 11-year period of economic growth.

The pandemic has caused strong reduction in consumer spending, which accounts for about 70% of economic activity. Consumer costs in the second quarter decreased by 34% (compared to last year), as quarantine measures have “frozen” entire industries – such as tourism, aviation, the cruise industry, entertainment and restaurant companies. Americans have drastically reduced their visits to hospitals and health care costs.

Many factories and businesses were forced to reduce production and temporarily close. The crisis was exacerbated by falling oil prices because of overproduction and a sharp drop in demand. The country’s exports fell 64% in the second quarter, outpacing imports by 53%. Investment in various areas of business also declined sharply due to the uncertainty of the macroeconomic situation.

At the same time, inflation fell by 1.9% in the second quarter after rising at the beginning of the year. The cost of many goods and services has fallen as companies have lowered prices in an attempt to increase sales. Economists say that inflation is likely to remain low until the pandemic continues.

With each month of the second quarter, Experts’ optimistic assessments of the rapid recovery of the US economy have been replaced by predictions that it may take months or even years before the economy and trade fully recover.

The pandemic COVID-19 will be dictate the conditions, success in vaccine production, as well as US trade policy, especially with the largest partner of China.

The latest economic data for July showed that the pace of recovery has slowed due to a new outbreak in the southern and western states of the United States. Over the past two weeks deteriorated employment rates.

On Wednesday FRS announced the decision to keep rates zero and continue measures to support the economy.

An important issue in the United States remains the decision of Congress on additional unemployment benefits. This Friday the term of additional unemployment benefits expires in the amount of $ 600 per week, without this help Americans will face even greater decline in their incomes.

Another important news on Thursday was a statement of the President Donald Trump that he is looking for an opportunity to postpone the presidential election in November.

The president attributes this to the risks of infecting the population with COVID-19, at the same time, the Democrats’ proposal for remote voting is considered a risk of potential falsification of election results.

Trump has no power to postpone the election, but the Constitution gives Congress the right to set a voting date. But members of both factions said they see no likelihood that the elections will be postponed.

Other articles

  • Exxon Mobil announces record depreciation of its gas assets by $ 20 billion
    News

    Exxon Mobil announces record depreciation of its gas assets by $ 20 billion

    The American oil and gas giant Exxon Mobil had one of the worst years in its history. Exxon shares have fallen by 45.36% since the beginning of 2020. The company has lost money for three quarters in a row, and in August they were excluded from the benchmark index of “blue chips” Dow Jones Industrial […]

  • S&P forecasts global debt growth of up to $ 200 trillion
    News

    S&P forecasts global debt growth of up to $ 200 trillion

    World debt will reach $ 200 trillion, which is 265% of world product, but the debt crisis is not yet expected. This was reported by Reuters, citing the forecast of analysts of the international rating agency S&P Global. It is claimed that this year the debt-to-world debt ratio has risen by 14% as a result […]

  • AirBaltic will resume flights to Ukraine
    News

    AirBaltic will resume flights to Ukraine

    Latvian airline AirBaltic will resume flights to Ukraine on December 1 and will start a new flight Vilnius-Kiev to Boryspil airport. The schedule includes departures twice a week on Tuesdays and Saturdays on Airbus A220-300. Flights from Vilnius will depart at 09:00, from Kiev – at 11:15. “Vilnius Airport can be used for transit to […]

  • WHO has announced a new record weekly increase in COVID-19 cases
    News

    WHO has announced a new record weekly increase in COVID-19 cases

    Last week, from November 16 to 22, more than 4 million people in the world became infected with the new type of coronavirus, which is a record number since the beginning of the pandemic. This was announced on Tuesday, November 24, the press service of the World Health Organization. According to the WHO, in these […]

  • Citigroup predicted the dollar to fall by 20% next year
    News

    Citigroup predicted the dollar to fall by 20% next year

    If coronavirus vaccines become widely available and help restore international trade and economic growth, the dollar is likely to fall by 20% in 2021. Bloomberg reports that this forecast was made by Citigroup Bank. If the forecast comes true, it will be a record drop since 1985, when the DXY index fell by 18.5% over […]

  • Weekend quarantine: named losses of restaurants
    News

    Weekend quarantine: named losses of restaurants

    During the first weekend of weekend quarantine, catering establishments lost 27% of turnover. This is as of Monday, November 16, according to the platform Opendatabot, citing data from Poster, a restaurant automation company. It is noted that during the week the turnover of cafes and restaurants fell by 10% compared to the previous week. In […]

  • The world’s largest free trade area has been created
    News

    The world’s largest free trade area has been created

    China, Australia, Japan and 12 other countries in the Asia-Pacific region have formed the world’s largest free trade area. The agreement was signed during the online summit of the Association of Southeast Asian Nations. We are talking about the creation of a free trade area called the Comprehensive Regional Economic Partnership (CREP). The following countries […]

  • The Moderna vaccine has been tested. It can be approved at an accelerated rate
    News

    The Moderna vaccine has been tested. It can be approved at an accelerated rate

    Reuters reported, In Switzerland, the procedure of accelerated testing of Moderna vaccine has started. This will allow to approve the drug if it passes all clinical trials. “Swissmedic can get an initial idea of the benefits and risks of vaccine candidates before the study is completed. This speeds up the review process and at the […]

Read also

The US economy got the biggest shock since the Second World War
News

Gas stations were obliged to warn of rising fuel prices

The Cabinet of Ministers has introduced a mandatory declaration of an increase in retail prices for gasoline and diesel fuel by more than 1%. Now the price increase must be reported in 20 days. This is stated in Government Resolution №450 of March 29, 2021, which was updated. The list of socially significant goods to […]

Next
The US economy got the biggest shock since the Second World War
News

China imposes standards of data security and criticizes the US policy

On Tuesday, Chinese Foreign Minister Wang Yi presented the government’s initiative to implement global data security standards, “golden rules” which should be applied by Chinese and other companies around the world. Among a number of points, the key ones are: preventing the illegal receipt of confidential personal information, ensuring the storage user`s data on the […]

Next
The US economy got the biggest shock since the Second World War
News

The transactions of the Delta Bank at 22 billion UAH declared as negligible

Deposit Insurance Fund (DIF) in the period of the interim administration and liquidation of insolvent Delta Bank recognized as negligible 175 deals worth 22.292 billion UAH. According to the  DIF, in particular, to 11 business transactions, including the sale of the assets with the discount, or related parties, transaction of 12.2 million UAH were recognized […]

Next
The US economy got the biggest shock since the Second World War
News

Nissan has introduced a limited series of sports cars

Nissan has introduced a new sports car Nissan GT-R NISMO Special Edition. The car is equipped with a dual 3.8-liter turbocharged V-6 engine with 600 horsepower and 481 Nm of torque. The sports car accelerates to 96 km/h in 2.8 seconds. The first sales in the US are expected this fall. The cost of the […]

Next
The US economy got the biggest shock since the Second World War
News

Shares of cruise company Royal Caribbean rose on 10% against of the background of optimistic forecasts

Shares of cruise company Royal Caribbean, which decreased by 57% since the beginning of the year, rose for the last quarter and closed with an increase of 10% to $ 57.31 per share on Monday after the publication of the financial results of the second quarter. Investor`s optimism is based on Royal Caribbean management’s statements […]

Next
The US economy got the biggest shock since the Second World War
News

The EBRD has improved its outlook for the Ukrainian economy

In the June forecast, the European Bank for Reconstruction and Development improved its expectations for Ukraine’s economic growth in 2021 from 3% to 3.5%. The EBRD forecasts the same growth next year. The Bank’s analysts believe that the main risks to Ukraine’s economy are related to the slow progress of reforms in the country and […]

Next
The US economy got the biggest shock since the Second World War
News

Ukrainian scientists won a grant to develop the vaccine against COVID-19

Two scientists from Lviv won the competition of projects of the National Research Fund of Ukraine. They will be provided with funds for developing a vaccine against the corona virus COVID-19, as well as to create a new generation of antibiotics. This was announced on Wednesday, September 9, by the head of the Lviv Regional […]

Next
The US economy got the biggest shock since the Second World War
News

Disney is laying off 28,000 employees in the United States through COVID-19

The American company Walt Disney stated that it is experiencing a number of economic problems due to the coronavirus pandemic, as the result of which it is forced to lay off 28,000 employees in the United States. This was reported by Bloomberg. “No matter how frantic this step is, this is the only possible option […]

Next
The US economy got the biggest shock since the Second World War
News

The AMCU fined the producer of soft drinks for 145 thousand UAH.

The Antimonopoly Committee of Ukraine (AMC) fined the producer  of soft drinks “Etrus” Ltd. for 145 thousand UAH for the dissemination of misleading information about their products. “Etrus” Ltd. gave inaccurate information on consumptive qualities of these drinks because of their method of presentation on the labels of products: Fruttela Orange, Fruttela Citrus and Fruttela […]

Next
The US economy got the biggest shock since the Second World War
News

Ukraine’s economic downturn has slowed sharply

The downturn in Ukraine’s economy in the first four months of 2021 slowed to 0.2%, according to a preliminary estimate by the Ministry of Economy. “The Ministry of Economy estimates a slight reduction in GDP at 0.2% (down 2% in the first quarter of 2021 by 4.9% over the four months of 2020),” the statement […]

Next
The US economy got the biggest shock since the Second World War
News

Megafon Company entered into a deal with Mail.ru

Russian operator MegaFon made a deal with Mail.ru shareholders to acquire a controlling stake shares of the corporation. According to official information, the purchase of securities was effected by signing the agreements with companies such as New Media and Technology Investment LP, New Media Technologies Capital Partners Limited and Ardoe Finance Limited, who are the […]

Next
The US economy got the biggest shock since the Second World War
News

Arcade Bank is on the market

The Deposit Guarantee Fund of individuals is starting the procedure of withdrawal from the market of Arcade Bank, the press service of the FDG reported. The Fund offered several options for removing the bank from the market: liquidation of the bank of exclusion in the elimination of all or part of its assets and liabilities […]

Next
The US economy got the biggest shock since the Second World War
News

The value of bitcoin has approached $ 20 thousand

Last week, the value of cryptocurrency fell sharply, but now it is approaching a historic high again. According to Coin Desk, after a sharp drop last week, the value of bitcoin broke the record and reached $ 19,686. Thus, the cryptocurrency exceeded the value recorded on December 16, 2017 by $ 20,665. But the absolute […]

Next
The US economy got the biggest shock since the Second World War
News

The National Bank named four factors for the growth of the hryvnia

Significant strengthening of the hryvnia against the dollar is due to four main factors. Vasyl Furman, Deputy Chairman of the Council of the National Bank of Ukraine, said this on the air of Ukraine 24 TV channel. “This is primarily an increase in prices in commodity markets, on the one hand, although, on the other […]

Next
The US economy got the biggest shock since the Second World War
News

Eurozone finance ministers have approved the ESM reform

German Finance Minister Olaf Scholz said that eurozone finance ministers had agreed on a package of measures to reform the European Stabilization Fund (ESM). “The ESM reform strengthens the euro and the entire European banking sector,” said Scholz, whose country currently holds the EU presidency. According to the agreements, a new “safety cushion” for European […]

Next
The US economy got the biggest shock since the Second World War
News

$ 100 million: Ukraine is waiting for the first tranche of Switzerland

President of Ukraine Petro Poroshenko said that by the end of January, the state expects financial aid of $ 100 million from the Swiss Confederation, which approved the allocation of this amount of money. Money must be received at the National Bank account. This information was published by Ukrainian portal InVenture. Swiss President Doris Leuthard […]

Next
WP2Social Auto Publish Powered By : XYZScripts.com