The entire world community, since mid-December 2019, has come under the enormous influence of the World Coronavirus Epidemic, which was named Covid-19. The pandemic has caused thousands of casualties around the world, imposed significant restrictions on the socio-cultural life of the population, and radically changed the trends of the global economy.
In this regard, business and economy, social and cultural life of the population, insurance industry and Covid-19, etc. are important areas for research today. In our article, we will dwell in more detail on the impact of the pandemic on the US economy.
Negative Influence of Covid-19 on the US Economy
The pandemic has significantly affected the trends of the world economy, leaving no country aside, including the United States. First of all, this is due to strict quarantine measures imposed by the governments of many states: the closure of shopping and entertainment centers, a ban on all public events, restrictions on movement both within the country and when crossing its borders, reducing production, etc.
Some companies have transferred their employees to work at home, while others are forced to send their employees on vacation. At the same time, there are cases of abuse and violation by some employers of the terms of the employment contract, which require employees to write applications for dismissal of their own volition or take leave at their own expense. All this has a negative impact on the financial situation and in the near future will reduce the demand for a number of goods and services.
In the second quarter of 2020, US economic activity fell sharply and output fell by an unprecedented 31.7% year-on-year as pandemic-related restrictions curbed private consumption. Most states reported an upward trend in new COVID-19 cases every day, which has stalled their plans to reopen economies or has led to the re-introduction of restrictions. And although high-frequency indicators began to stabilize in the summer, the growth rates of retail sales and industrial production slowed down in August.
Positive Impact of Covid-19
However, not all industries incur losses – a number of companies managed not only to maintain a stable position in the market but also to significantly increase their revenues.
Positive dynamics is noted in the following areas:
- E-Commerce. Today preference is given to shopping online;
- Pharmaceuticals. The efforts of the world’s leading pharmaceutical companies are focused primarily on the development of a vaccine against COVID-19. Another important aspect of their activities is the timely delivery of the required quantities of drugs used in the treatment of people affected by the virus;
- Delivery services. Various delivery services are increasing their market share – restaurants and cafes deliver ready-made food to their customers by couriers;
- Video communication services. Conferencing services have become very popular;
- Entertainment and gaming services. People’s inability to spend their leisure time in cinemas and entertainment centers encourages people to increasingly use similar online services.
So, the impact of Covid-19 on the US economy is mixed. There are negative and positive aspects. It is difficult to make further predictions so far.