Question

Discuss in detail the influence of COVID-19 on the GDP of the USA. Explain the same with the graphs. Describe in 400 words.

Answer 1

As we know that Coronavirus has originated from the Wuhan city China in 1 December 2019. From there it spread to other countries of the world. The COVID-19 is related with the SARS-CoV-2 virus. The WHO has declared this virus as pandemic on 11 March 2020. The COVID-19 has its presence in 189 countries and territories of the world. China was once the most affected country of the world but nowadays china has controlled the further spread of this world. If we look towards the present status than we will see that USA is on the top of list with most number of deaths (130,030)and positive cases (2,732,594) as on 1 July 2020. The US is the most affected country till date followed by Brazil, Russia ,India and UK.

We know that GDP is the monetary value of all goods and services produced in a country over a period of time. The COVID-19 has affected the GDP rates of each and every country of the world. The business operations are shut, trade is closed etc. The countries are cut from one another. The COVID-19 has forced the countries to go for complete lockdown and maintain the norms of social distance. The GDP rate of USA is contineously falling. The Country is heading towards recession.

US of America is on the top of GDP rank but due to COVID-19 the country is slowly losing this tag. The US economy shrank by an annualized 5 percent in the first quarter of 2020, in line with the previous estimate and ending the longest period of expansion in the country's history. It is the biggest drop in GDP since the last quarter of 2008 as the Covid-19 pandemic forced several states to imposed lockdown restrictions.The current GDP of US is 20.54 lakh crores. The Current GDP rate of USA is -5.91 %, in 2019 it was 2.33 %, in 2018 it was 2.93 % and in 2018 it was 2.37%. These figures indicate that the USA is heading towards recession. The COVID-19 has negative impact on the GDP of USA. The country is on complete lockdown and this lockdown has created the panic in USA which in turn decreases the economic activities and the result we see is the decrease in the rates of GDP.

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