America now in recession because of Coronavirus.
After 128 months of just fantastic growth, the news is out that the United States of America is now in depression as a result of the Coronavirus pandemic. The word is that in the month of February 2020, as a result of Coronavirus, America went into depression.
Michelle Meyer, Bank of America U.S. economist stated:
“We are officially declaring that the economy has fallen into a recession … joining the rest of the world, and it is a deep plunge. Jobs will be lost, wealth will be destroyed and confidence depressed.”
It was stated by the National Bureau of Economic Research:
“The unprecedented magnitude of the decline in employment and production, and its broad reach across the entire economy, warrants the designation of this episode as a recession.”
In the first quarter of 2020, the gross domestic production of the United States of America dropped by 5%.
Greg McBride, Chief Financial Analyst of Bankrate.com said:
“March represented a huge contraction, and that contraction was significant enough that it offset the growth in January and February. That really underscores the significant and sudden stop in the economy, because the lockdowns didn’t even kick in on March 1. So, in reality, it was the last two weeks of the quarter.”
Sam Stovall, Chief Investment Strategist at CFRA Research, said:
“This was a man-made recession-slash-bear market where, in a sense, there was almost no uncertainty about what was going to happen to us. The only question was how deep would it go. In some ways, it’s not a surprise that the NBER told us we were in recession faster than any other prior time.”
The NBER’s Business Cycle Dating Committee said in a statement:
“The unprecedented magnitude of the decline in employment and production, and its broad reach across the entire economy, warrants the designation of this episode as a recession, even if it turns out to be briefer than earlier contractions.”
States in America have reopened businesses and it appears that life in America, seems to be returning to some kind of normalcy. But, it has to be remembered, the United States of America, is the country that has been hit most by Novel Coronavirus – and with each passing day, more and more people are getting infected and dying, because of Coronavirus.
Chirag Vasani is Chief Editor for wwbnn. He has been writing online
and offline since many years now. When he is not writing, he likes to play golf.