What to know about the report on America’s COVID-hit GDP

As we all know, this pandemic has taken a serious hit on our economy; the biggest hit since the Great Depression. "GDP fell at a 32.9% annualized rate, the deepest decline since records began back in 1947. The drop in GDP was more than triple the previous all-time decline of 10% in the second quarter of 1958. The economy contracted at a 5.0% pace in the first quarter. It fell into recession in February." The affect it had and still has on consumer and business spending is devastating. Jason Reed, a finance professor at the University of Notre Dame's Mendoza College of Business says, “right now, the American economy is speeding toward a fiscal cliff. Not only do we need Americans to take serious action preventing the spread of the disease, but we also need Congress to agree on another stimulus package and quickly.” Years of business growth has been wiped out in a matter of months. The economy would be in a much worse situation if it wasn't for the fiscal package of nearly $3 trillion that "offered companies help paying wages and gave millions of unemployed Americans a weekly $600 supplement." Since businesses have opened back up in May, COVID is hitting areas hard and business is slowing again. In the week ending July 11th, 30.2 million Americans were receiving unemployment checks. When will it end?

Mutikani, Lucia. “What to Know about the Report on America's COVID-Hit GDP.” World Economic Forum, 31 July 2020, www.weforum.org/agenda/2020/07/covid-19-coronavirus-usa-united-states-econamy-gdp-decline/.