Washington – The Arabs Today
Expecting USA Its economy retreated in the second quarter, with its gross domestic product down about 12% and the unemployment rate rising to 14% due to the outbreak of the Covid-19 epidemic, before the revival of the coming summer. It disrupted the spread of a virus Sk The new American economy that President Donald Trump was proud of is energetic in his election campaign in pursuit of a second term.
The disruption of activity may lead to a decline in the US GDP by 1.9% in the first quarter compared to the previous quarter, according to estimates published Friday by the “Congressional Budget Office”. As for the second quarter, it may decrease by 11.8%, which will represent a decrease of 39.6% from its level in the second quarter of 2019, according to the independent agency.
The Congressional Budget Office commented on these figures in a statement by saying that “the economy will see a strong contraction in the second quarter of 2020 as a result of factors linked to the global epidemic, particularly the social divergence measures that were imposed to contain it.”
But he cautioned that these estimates were still preliminary and unconfirmed. Economic activity in the United States stalled with the spread of the virus during March, and measures to contain it were imposed.
Within 5 weeks, more than 26 million people have registered for unemployment assistance, which is unprecedented in the United States. The economy is likely to start to improve from summer when concerns about the epidemic subside and local authorities ease domestic quarantine measures.
But recovery from the crisis will take a long time, and “the challenges facing the economy and the labor market will continue for some time.” Prior to the Coruna outbreak, Trump announced in January that he expected 3% growth for the economy in 2020 as in the following years, and made it one of the foundations of his campaign.
As for the federal budget deficit, it is expected that this year will reach 3700 billion dollars, more than three times the previous expectations, after Congress approved a huge plan to support the economy. With regard to debt, it is expected to represent 101% of GDP at the end of the year.
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