How the US Economy Has Been Impacted From the Pandemic
By Space Coast Daily // May 14, 2020
Since the coronavirus pandemic emerged, thousands of people have died, and millions have been infected. Many countries have imposed strict lockdown to keep people indoors and control the spread of the virus.
The impact of covid-19 has been felt worldwide, and the US is among the many nations that have been affected.
The US economy has shrunk, and at the fastest rate than many economists and financial analysts anticipated. Despite the USA being the world’s largest economy, it has been hit the most than a decade ago.
The economic damage is mounting across the whole nation, with a surge in the number of people getting infected daily.
The US government has been working hard to curb the economic effects of the pandemic. The Federal Reserve has obliged to come up with practical ways to cushion the financial setback.
For instance, it has lowered interest rates to almost zero per cent.
In this light, here are several circumstances that show how the covid-19 pandemic has impacted the US economy. Have a look:
A Rise in Unemployment
The coronavirus has accelerated job losses in many states. The government imposed total lockdown, and most people have lost their jobs while others have been working from home.
Millions of people have lost their jobs, and the situation is likely to worsen as more covid-19 cases are being reported daily.
More than 30 million people in the USA have filed for unemployment benefits. On the other hand, hundreds of thousands of companies have furloughed their employees.
The number of people seeking government funding has surged significantly. The introduction of initiatives to help small and medium-sized businesses is a clear indication that many people are losing their jobs daily.
Services Industry Has Been Hit Hard.
The services industry provides a significant boost to the United States economy. It is also a major source of employment and growth in the nation, but it has been hit greatly by the coronavirus pandemic.
The US has reported a sharp decline in retail sales from its products as the lockdown order has forced many service providers to shut down.
Despite many online stores operating normally, the market has not been able to support the failing economy. The consumers of most of these services have as well been affected. Many may not have enough to spend after the pandemic, or even when the lockdown is lifted.
Many Americans have been spending on food and accommodation. And the demand for footwear and clothing has as well declined at a rapid rate. The economic damage has indeed hit the service industry in many ways.
A Decline in Manufacturing Activity
For many years, manufacturers have been pushed to the wall by the trade war between the US and China. Then again, the covid-19 pandemic has worsened the situation, with many manufacturers having to shut down their businesses.
Many manufacturing companies in the USA are incurring losses daily, and this is not what many manufacturers want to hear.
The situation will worsen if the pandemic is not controlled, and things go back to normal. Reduction in the demand for goods in the US and globally is a key challenge many manufacturers are facing, and outputs have significantly declined.
Transport Industry Has Been Affected
The US government has imposed lockdown in each state, and movement from one state to another has been restricted. Hundreds of countries globally have also enforced travel restrictions that have affected the travel industry immensely.
Most of the flights to and from the USA have been cut. Millions of customers have cancelled their trips, and the industry is going through a hard time.
Coping With Economic Damage
The economic impacts of the coronavirus can be felt not only in the US but also globally. Millions of people have lost jobs, and businesses have been making huge losses.
The economic damage of covid-19 has hit everyone, and it is wise to prepare yourself financially.
Individuals need to pursue efficient ways to protect themselves and their loved ones during these economic hard times. It is wise to reach out to lenders and seek government bounce back loan scheme if you are eligible.
There are lenders out there who are willing to accommodate customers in need of loans, and you should grasp this opportunity.
You can opt for the now-loan and choose a loan amount that will help you meet your financial needs. It’s easy to apply for your loan online and get funded within a few minutes.
Don’t have any reservations getting your loan from licensed and insured lenders who want to lend to you. There are incredible benefits that come with these loans.
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