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The inactivity currently faced by the U.S. economy due to the virus pandemic appears to be the sharpest contraction that will likely boost the national unemployment rate by up to 16% or higher. The steep forecast requires large volumes of stimulus to ensure economic recuperation, a White House economist said on Sunday.
“This is the biggest shock that our economy, I think, has ever seen. We’re going to be looking at an unemployment rate that approaches rates that we saw during the Great Depression,” President Donald Trump’s adviser, Kevin Hassett said.
The Congressional Budget Office forecasted gross domestic product to contract by 40% and the unemployment rate to peak at 16%, far sharper than the previous record of 3.5% before the pandemic.
Implemented restrictions aimed at combating the coronavirus pandemic have taken a toll on the U.S. economy as businesses were halted and the unemployment rate drastically increased. More so, 2.65 million Americans were recorded to have filed for unemployment amelioration since mid-March while retail sales, homebuilding, and consumer confidence all projected weak data.
The Dollar fell to two-year lows on Friday, heading to its lowest decline in 10 years as concerns mounted over the economic recovery of the U.S. amid a second resurgence of the COVID-19 pandemic. The Dollar index plunged to 92.777, on course ...
Oil traded higher on Friday, further reclaiming lost ground from three-week lows in the previous session as the COVID-19 situation continued to dent the global economy as well as oil consumption. Brent crude gained 0.3%, trading at $43.08 ...
June had seen Japan’s industrial output breaking its four-month slump. The recuperation could be attributed to a modest recovery seen in broader business and consumer activity after the world’s third-biggest economy suffered from ...
The outlook for India’s struggling economy has darkened further on weak business activities and surging virus cases. This will likely prompt the Reserve Bank of India to lower interest rates again, a Reuters survey showed. According ...
The second quarter had seen Australian consumer prices dropping by a record. This could be attributed to the coronavirus crisis dragging child care cost and petroleum prices, inflicting a serious damage to years of growth toward higher inflation. Last ...
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