Question

How is Corona (CoVid 19) affecting the U.S.'s current growth rate? What is the U.S.'s actual rate of growth? What was it in January 2020? According to the rule of 70, how fast would our economy have doubled if it stayed at the January rate? At the current rate?

Answer 1

Corona (CoVid 19) affecting the U.S.'s current growth rate:-

The U.S. economy suffered its biggest blow since the Great Depression in the second quarter as the COVID-19 pandemic shattered consumer and business spending, and a nascent recovery is under threat from a resurgence in new cases of coronavirus.

the disease COVID-19, can have disruptive effects on the economy. It can disrupt the global supply of goods, making it harder for U.S. firms to fill orders. It can also waylay workers in affected areas, reducing labor supply on one end and on the other slow the demand for U.S. products and services.

Gross domestic product collapsed at a 32.9% annualized rate last quarter, the deepest decline in output since the government started keeping records in 1947. The drop in GDP was more than triple the previous all-time decline of 10% in the second quarter of 1958. The economy contracted at a 5.0% pace in the first quarter. It fell into recession in February.

• The COVID-19 pandemic has caused the biggest blow to the US economy since the Great Depression.
• GDP fell at a 32.9% annualized rate, the deepest decline since records began back in 1947.
• 30.2 million Americans were receiving unemployment checks in the week ending July 11.

The U.S.'s actual rate of growth :-

U.S. GDP growth slows to 2.3% in 2019. U.S. gross domestic product grew at a 2.1% annual rate in the final quarter of last year, the Commerce Department said on Thursday. For all of 2019, economic growth came in at 2.3% — less than the 2.9% in 2018.

In the United States, growth is expected to moderate from 2.3 percent in 2019 to 2 percent in 2020 and decline further to 1.7 percent in 2021 .

According to the rule of 70 :-

The rule of 70 is a calculation to determine how many years it'll take for your money to double given a specified rate of return. The rule is commonly used to compare investments with different annual compound interest rates to quickly determine how long it would take for an investment to grow. The rule of 70 is also referred to as doubling time. It's important to remember that the rule of 70 is an estimate based on forecasted growth rates. If the rates of growth fluctuate, the original calculation may prove inaccurate.

the Rule of 70 is often used in discussions of population growth, it can equally apply to other subjects where rates of growth are considered.

the rule of 70 to estimate a country's gross domestic product (GDP) growth by dividing 70 by the expected GDP growth rate. The economic growth rate could be used to determine the amount of years it would take a country's GDP to double.

In the long-term, the United States GDP Annual Growth Rate is projected to trend around 3.80 percent in 2021 and 2.00 percent in 2022, according to our econometric models.