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The US economy recorded its worst performance in 2020 in 74 years

2021-01-28T08:46:37.498Z


Washington - SANA A survey published today showed that the US economy contracted last year at its fastest pace since the end of the heat


Washington-SANA

A survey published today showed that the US economy shrank last year at its highest pace since the end of World War II, as the Corona pandemic bankrupted service companies such as restaurants and airlines and pushed millions of Americans out of the labor market and impoverished them.

According to the survey conducted by Reuters, it is also expected that the Ministry of Commerce data on the GDP for the fourth quarter of last year, which is published today, will show that the recovery from the epidemic has lost its strength with the end of last year amid the increase in Corona virus infections and the depletion of nearly 3 trillion dollars of money. Relief from the government.

The survey suggested that the continued weakness in the labor market is the reason for the high poverty rates, as the US Department of Labor is expected to announce today that an additional 875,000 people applied for government unemployment benefits last week.

About 16 million Americans were receiving unemployment checks at the end of 2020 and the economy lost many jobs last December for the first time in eight months, and only 12.4 million of the 22.2 million jobs lost in March and April were recovered.

The agency said that the Fed yesterday left the benchmark interest rate near zero and pledged to continue pumping money into the economy by buying bonds, noting that "the pace of recovery in economic activity and employment has slowed in recent months."

"Last year was a terrible year for the economy ... this is the first recession in the service industry in recent memory as many jobs were lost," said Song Won Sun, professor of finance and economics at Loyola Marymount University in Los Angeles.

According to the survey, economists believe that the US economy contracted by up to 3.6 percent in 2020, the worst performance since 1946, following a 2.2 percent growth in the previous year and the first annual decline in gross domestic product since the global economic crisis between 2007 and 2007. 2009.

The agency's survey concluded that the expected significant downturn would leave GDP roughly 2.3 percent below its level at the end of 2019.

With the Corona virus not under control, economists expect growth to slow further in the first quarter of this year before the economy regains some growth by the summer with the start of additional stimulus and more Americans receiving the anti-vaccine.

And a survey last week by professors at the University of Chicago and the University of Notre Dame showed that the poverty level in the United States rose 2.4 percentage points to 11.8 percent in the second half of last year, raising the number of poor by 8.1 million people.

Amer Dawa

Source: sena

All business articles on 2021-01-28

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