COVID-19 has caused 29% of the US economy to go idle
What are your thoughts on the economy currently?
MarketWatch Reports: Coronavirus shutdowns idle 29% of U.S. economy
Due to COVID-19, at least 1/4 of the US economy has gone idle. A study conducted by Moody's Analytics shows how much the US economy has shut down over the past month. It also shows which states have taken the biggest hit.
Forty-one states have ordered at least some businesses to close to reduce the spread of the coronavirus, according to Moody's. Restaurants, universities, gyms, movie theaters, public parks, boutiques and millions of other "nonessential" businesses have shut off the lights as a result. The upshot: U.S. daily output has fallen roughly 29%, compared with the first week of March, just before the spate of closures, the analysis shows.
Most economists believe the economy to pick back up this summer or fall, as states remove stay at home rules and virus cases drop.
The shutdowns are concentrated in the most populous counties, which produce a disproportionate share of the nation's goods and services. Eight in 10 U.S. counties are under lockdown orders, according to Moody's, but they represent nearly 96% of national output.
Moody Analytics compares the current crisis to the economy after the 9/11 terrorist attacks, when all airlines temporarily shutdown. After the attack, US output dropped by almost $111 billion. In the face of COVID-19, we have already lost $350 billion in output.
To read more, check out the article here.
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