More than 26 million Americans lose their jobs

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The country has set a new record

More than 26 million Americans lost their jobs. Photo: Brody Vissers

During the quarantine period in the United States, more than 26 million people lost their jobs, and the country’s GDP plummeted by 4.8% for the first quarter. According to the media, it is the worst indicator of the US economy since the 2008 financial crisis.

Prior to the coronary crisis, it was expected that the US economy would grow by 2% in 2020. Apart from the economic downturn, business activity and consumer sentiment is also deteriorating rapidly in the country.

It is noted that in the second quarter of 2020, the decline may be even more significant, as the January – March data do not, in fact, take into account the results of the quarantine initiated due to the proliferation of COVID-19. Some experts do not rule it out until July Drop may increase by 30%.

In addition to the United States, a contraction in the economy is also observed in Europe. Therefore, in Germany – the country with the strongest economies in the region – this year, GDP may decline by 6.3%. Economy Minister Peter Altmeier said that the country’s economy is in the grip of the worst recession since World War II due to the coronovirus epidemic.

The Chinese economy, where quarantine was introduced earlier than other countries, fell 6.8% in the first quarter.

In general, according to IMF forecasts, the global economy will fall by 3% this year. In developed countries, the decline will be up to 6 times – twice as deep. The IMF forecast for Ukraine is a decline of 7.7% at the end of the year.

Recall, in late March, the number of Americans applying for unemployment benefits doubled for the first time – from 3.28 million to 6.64 million.

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We previously wrote that the International Monetary Fund has identified three priorities in overcoming the crisis, including: financing the health system, supporting critical domestic and trade support systems, and preparing for post-crisis economic recovery.

Read:
Working during an epidemic: how coronoviruses affect residents of different countries
On leave at your own expense: What to do if you lose your job during quarantine coronavirus and economy: How to help states help businesses

According to the material bbc.com


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