By Jazmin Louise Antinew
Heard the news? It could take three years for the United States economy to recover from COVID-19. It is predicted the global economy could pull through by the third quarter of 2022, while the U.S. economy will need until the first quarter of year 2023. Stores all over the U.S. have been closing due to the virus. One analyst has estimated this could result in a record year for permanent retail store closures, with CNBC reporting it could be over 15,000. If the public follows recommended health precautions (social distancing and lockdown measures) and resurgence in the virus is prevented, the world will experience a “muted” economic recovery, says McKinsey from the World Economic Forum. The virus has hit various industries such as travel and commercial aerospace which will take a long time to recover. The virus has also affected supply chains all over the world, specifically between the U.S. and China. This has become an issue, as the U.S. is dependent on many Chinese exports. According to the Center of American Progress, the economic disruptions caused by the virus and the increased uncertainty are being reflected in lower valuations and increased volatility in the financial markets. While the exact effect COVID-19 will have on the U.S. economy is unknown, it is clear that it poses tremendous risks.
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May 2020
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