The state of the American economy today, needless to say, has taken a massive beating, what with Coronavirus and all the other things that are literally crippling this great nation. So as to stop the spread of the Coronavirus pandemic, governors in America have passed orders that businesses which are non essential, should stay shut.
Based on key economic indicators, it appears that the American economy, is headed for a U-shaped recession. And because of this, there could be a fall in the GDP growth rate by as much as 50%. This is the kind that was seen in the time of the Great Depression. Also,
unemployment in America, could see a high of 30%.
In a matter of a few months alone, Coronavirus has as good as crippled the American economy. In the first quarter, there was a decline in the growth rate by as much as
5%. This was a warning that the recession had started in America, in the year 2020.
And then in April 2020, retail sales in America, plunged to 16.4%, as a result of all nonessential businesses being shut down in the United States of America, by governors.
The number of people unemployed in America, shot up to 23 million, because companies laid off workers.
These are all early signs that the second quarter of the American economy, is going to be worse.
The GDP growth of America will slow to 2.0% in 2020 and it will be 1.9% in 2021 and 1.8% in 2022.
The number of unemployed people in America will shoot up to 26 million. The unemployment rate in America will in 2020, average 3.5% and this will increase to 3.6% in 2021 and 3.7% in 2022.
In the year 2020, inflation will average 1.9% and this will increase to 2.0% in the years 2021 and 2022.
It has been predicted by the Congressional Budget Office, that the American economy will decline by 38%.