The world’s strongest country, the Us economy, is seen crawling in front of the Coronavirus. While more than 50,000 people have died in the United States due to this virus, unemployment in the country is also at a high of 90 years.
The latest figures show that the US GDP growth slipped to 4.8 per cent between January and March, the first quarter of 2020. Earlier, GDP growth was 2.1 per cent in the last quarter of 2019. For the first time since 2014, the US growth rate has been negative, with growth at -1.1 per cent.
Earlier, the global recession of 2008-09 had been at minus four consecutive quarters. The calendar year and financial year are the same in the US. In India, the financial year starts from April and runs till March 31 next year.
What does it mean?
This is bad news for the US economy. These figures are pointing to a slowdown. If the situation does not improve in the coming months, it will be a matter of concern globally. In fact, the US has an economy of many countries, including India. Professionals in these countries may be at risk of jobs, which is not good. About 80 per cent of India’s IT companies’ earnings come from the US and Europe.
Highest unemployment since 1930:
Earlier, official data indicated that unemployment in the U.S. is at a 90-year high. The unemployment rate has grown to the highest since the Great Depression of 1930. Statistics show that one American worker in every six has been thrown out of the job in the wake of the Coronavirus epidemic. In just one week, more than 44 lakh people applied for unemployment benefits. With this, nearly 2.6 crore people have applied for unemployment benefits in five weeks.
Gracia is a senior writer at Get Ignite, where she covers media and advertising and co-hosts the Original Content podcast. Previously, she worked as a tech writer at Adweek, a senior editor at the tech blog VentureBeat, and a local government reporter at the Hollister Free Lance. She attended Stanford University and now lives in Brooklyn.