Updated: May 3
EconWatch (April 5, 2020)
As the COVID-19 outbreak spreads faster than ever, global economies have been sent into a tailspin while countries struggle to fight this deadly pandemic. Just last week, Kristalina Georgieva, Managing Director of the IMF, announced “it's clear that the global economy has now entered a recession”.
So what implications would this have on the United States?
Despite being the world’s economic hegemon, investors expect drastic hits on industries nationwide “that could be as bad or worse than the 2009 downturn.” (ABC News).
As forecasts continue to get worse, businesses have been forced to lay off workers in order to stay afloat.
Indeed, Pete Davidson of USA Today explains that just within the past month alone, over 700,000 Americans have lost their jobs.
“The 701,000 payroll losses are the most since 800,000 jobs were shed in March 2009 during the depths of the Great Recession and they end a record 113-month streak of gains dating to October 2010.”
Even worse, The Oxford Economic Institute predicts that over 24 million Americans will become unemployed, an estimated 4% higher than the unemployment peak during the Great Recession.
Which industries will be hit the hardest? Check out an interesting article here.