The United States collapses
EconomyUS economy collapses historically
The US economy is clearly feeling the consequences of the corona pandemic: In the second quarter, gross domestic product (GDP) fell by 32.9 percent over the year. Compared to the previous quarter, this corresponds to a minus of almost ten percent. This means that the American economy has been on a downward trend for the second quarter in a row. From January to March, GDP had already fallen by 4.8 percent. The current slump is considered to be the strongest since statistics began 73 years ago.
Much of the economic development can be traced back to the reluctant shopping behavior of the American population. Compared to the first quarter, consumption collapsed by more than a third - around 34.6 percent. Investments and exports also declined from April to June due to the pandemic.
New infections could exacerbate the economic situation
Unemployment also continues to rise, increasing pressure on the US economy. According to the US Department of Labor, more than 1.4 million US citizens filed an initial application for unemployment benefits last week. Around 17 million people are already receiving financial support. The development on the labor market will be particularly explosive in view of the expiring Corona aid. In March, Congress increased aid for the unemployed to $ 600 a week. An extension of the measure has not yet been decided, the elimination affects millions of Americans.
The contraction of the US economy is at a similar level to that in Germany. The GDP slumped around 10.1 percent from April to June compared to the first quarter. After the economic low point during the lockdown in April, however, a recovery is gradually starting in the Federal Republic. In the USA, however, the upswing is uncertain given the high number of new infections.
US Federal Reserve Chairman Jerome Powell had already warned on Wednesday of a historic decline in economic output in the second quarter. He also linked the further economic recovery to the success of the pandemic fight. The economic outlook is therefore uncertain. His assessment thus agrees with that of American economists. Although they expect a strong plus for the third quarter, the development of the pandemic could exacerbate the economic situation.
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