Top officials have also hinted that the country’s actual unemployment rate could be as high as 10 percent.
Washington … News Time
The Corona Crisis has hit the US economy hardest in the last half-century, with half a million people lost their lives in the country, and new cases of the deadly disease are emerging in alarming numbers despite some reductions. And in recent days, top officials have also hinted that the country’s actual unemployment rate could be as high as 10 percent. At the same time, some positive factors related to the spread of the corona virus are emerging, which has increased the chances of the US economy reaching its highest level in four decades. These factors include the availability of vaccines and rising consumer spending. The wind trend, including President Joe Biden’s $19 trillion Corona Relief and Stimulus Package, includes American savings and increased production at factories.
According to a report by the American Broadcasting Corporation, in view of all these factors, the three major economies Barclays, Morgan Stanley and Oxford have predicted that the US economy will grow at a rate of 6.5 percent this year, while Goldman Sachs. Goldman Sachs has said that the growth rate of the US economy will reach a high of 7%. Experts say the widespread availability of the vaccine will reduce the uncertainty, the months-long Corona prevention ban will begin to ease and people will return to normal economic activities and business life. According to Chetan Ahya, chief economist at Morgan Stanley, according to US broadcaster US Today, some experts believe that a strong return to the economy will lead to a strong trend. It is a great thing for the economy to move forward in this tremendous way because the US economy has never been able to regain its lost growth rate after the recessions of 2007 and 2009.
Economists expect the US economy to continue to grow at its highest level by the end of 2022, but some economists also warn of the negative effects of this sudden rise in inflation over the past 20 years, according to the Washington Post. Former Finance Minister Larry Summers says economic growth could lead to the economy overheating beyond its means, leading to a new recession. Similarly, according to a recent study, employees of many companies will do their office work from home, i.e. online, which can lead to difficulties in reviving small businesses. According to a research report by the Greater Washington Partnership and Ernst & Young, about 75% of workers will work online in the first four months of this year. Experts say incentives for the vaccine supply to more people and the revival of small businesses by the US administration will be crucial.
According to an article published in the Washington Post, the Corona crisis has given rise to new financial thinking. Keep it close to zero, so that it is easier for both businesses and consumers to borrow. However, most experts say the $19 trillion relief package from the Biden administration will play a key role in reviving the economy, as new funds will come into the pockets of consumers already in the past year. The $ 38 trillion provided by the government has given a lot of support to the economy. According to economists, once the economy recovers from an increase in the workforce in the United States, its growth can be maintained at a healthy level in this regard, the return of unemployed women to work and the arrival of new immigrants. Coming to the United States and modernizing the country’s infrastructure will be very important. The Congressional Budget Office estimates that if the US economy grows at a rate of 2.5 percent compared to 1.8 percent, $ 111 trillion in economic activity will take place in a decade.
