Covid-19 ‘blew away’ US $ 8 trillion in economic output, the US may take nearly 10 years to recover

Covid-19 will reduce the size of US economic output by about US $ 8 trillion over the next decade by real value, equivalent to 3% of the Gross Domestic Product (GDP) accumulated. (Source: Getty Images)
Covid-19 will reduce the size of US economic output by about US $ 8 trillion over the next decade by real value, equivalent to 3% of the Gross Domestic Product (GDP) accumulated. (Source: Getty Images)

A report by the Office of Congressional Budget (CBO) published on June 2 said that the economy could take nearly a decade to fully recover from the effects of the Covid pandemic – 19.

CBO predicts that the Covid-19 pandemic will likely cause US economic output to lose about US $ 8,000 billion in this decade, down about 3% compared to the pre-pandemic forecast.

Consumer spending continued to decline due to rising unemployment, many Americans lost their jobs and could only return to work this summer when the states began to reopen. CBO experts predict that it will take about a decade for the employment rate to return to pre-pandemic levels.

According to CBO’s assessment, the US $ 3.3 trillion stimulus programs approved by the US Congress since March will only “help mitigate the economic downturn somewhat.”

The CBO report was published amid new survey results showing factories in the US and abroad continue to reduce production and cut workers in May, although the pace of decline has slowed. when governments began to relax blockade measures.

Source: https://behecare.com/

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