The US economy fell 4.8 percent in the first quarter

Coronavirus causes US GDP growth to slow to 4.8% year-on-year

Coronavirus causes US GDP growth to slow to 4.8% year-on-year

Washington … News Time

The US Bureau of Economic Analysis (BEA) says the coronavirus has slowed US growth to 4.8 percent year-on-year in terms of gross domestic product (GDP). According to Al Jazeera, economists are calling the 4.8% decline in growth rate more than the Great Depression. The data confirms that the US economy is rapidly entering recession. A press release issued by the BEA said that the decline in GDP in the first quarter was actually due to the government ordering people to stay at home in the wake of the virus in March. According to the agency, this has resulted in a sharp change in demand, closure of business activities and schools or the cancellation of their operations, with consumers canceling, limiting or redirecting their spending.

US imports fell 15.3 percent and exports fell 8.7 percent due to a drop in global demand due to the coronavirus. In addition, business investment declined by 8.6%.In this regard; economists have predicted a worsening situation for the current quarter. The US Senate has approved a 2 trillion aid package for the coronavirus emergency. The largest aid package in U.S. history, approved by Congress, will provide 500 billion to the virus-affected industrial sector, while dallor 3,000 per person will be distributed to millions of American families. In addition, 350 billion has been allocated to small businesses for loans, 250 250 billion to help the unemployed and 100 100 billion for health systems, including hospitals.

Last week, US crude oil prices fell for the first time in history to a negative level, followed by a sharp decline on Wall Street. US benchmark West Texas Intermediate (WTI) closed at 37 37.63 a barrel for May delivery. That is, crude oil sellers were forced to pay buyers 37.63 a barrel, along with oil. This was due to oversupply in the market, which was the result of increasing Saudi oil production. As a result, there was less space to store oil and companies were forced to pay buyers to pick up oil from their storage. US oil prices returned to $.20 on Wednesday, but global benchmark Brent Crude, which accounts for 60% of the international market, also fell to its lowest level since 1999. Brent crude traded at 15 15.98 a barrel on Wednesday, and the US president sought to support oil prices by ordering to target Iranian ships, with Brent crude returning to 21 21.50 a barrel on Wednesday.


No comments.

Leave a Reply